Fitsum Kelilie PDF

FACTORS INFLUENCING CONSUMER BUYING BEHAVIOR
TOWARDS FAST MOVING CONSUMER GOODS (FMCG) IN

ADDIS ABABA
By: Fitsum Kelilie
Thesis Submitted to the School of Graduate Studies of Addis Ababa University in

Partial Fulfillment for the Award of the Degree of Master of Arts in Marketing
Management
June, 2014
Addis Ababa
FACTORS INFLUENCING CONSUMER BUYING BEHAVIOR OF
FAST MOVING CONSUMER GOODS (FMCG) IN ADDIS ABABA
A Thesis Submitted to the School of Graduate Studies of Addis Ababa University

in Partial Fulfillment for the Award of the Degree of Master of Arts in Marketing
Management
By: Fitsum Kelilie

ID No. 0790/04
Advisor: Rakshit Negi (Ph. D.)
June, 2014
Addis Ababa
FACTORS INFLUENCING CONSUMER BUYING BEHAVIOR OF
FAST MOVING CONSUMER GOODS (FMCG) IN ADDIS ABABA
By: Fitsum Kelilie
Approved by Board of Examiner
__________________________ ____________________ ____________________
Advisor Signature Date
__________________________ ____________________ ____________________
Examiner Signature Date
__________________________ ____________________ ____________________
Examiner Signature Date

DECLARATION
I, Fitsum Kelilie, hereby declare that this Thesis titled Factors Influencing Consumer Buying
Behavior of Fast Moving Consumer Goods in Addis Ababa is my original work. I have carried
out the present study independently with the guidance and support of the research advisor,
Rakshit Negi (PhD). Any other research or academic sources used here in this study have been
duly acknowledged. Moreover, this study has not been submitted for the award of any Degree or
Diploma Program in this or any other institution.
Fitsum Kelilie ________________ __________________

Signature Date
Confirmation by Advisor ________________ __________________

Rakshit Negi (PhD) Signature Date
TABLE OF CONTENTS
Contents Page No.
Acknowledgements i
List of Tables ii
List of Figures iii
List of Abbreviations iv
Abstract v
CHAPTER ONE: INTRODUCTION

1.1 Background of the Study........................................................................... 1
1.2 Statement of the Problem.......................................................................... 4
1.3 Research Questions .................................................................. 5
1.4 Objectives……........................................................................................... 6
1.5 Definition of Terms .................................................................. 6
1.6 Significance of the study................................................................................... 7
1.5 Scope and Limitation of the Study.......................................................................… 7
1.6 Organization of the Study..............................................................................................…8
CHAPTER TWO: LITERATURE REVIEW

2.1. Introduction…………..………………………………..…………..….… 9
2.2. Theoretical Framework………………………………..…………..….… 9
2.2.1. Consumer Behavior: Definition…………..………………….…… 9
2.2.2. Theories of Consumer Behavior…………………..……………… 11
2.2.3 Consumer Behavior in FMCG……………………………………… 16
2.2.4 Typology of FMCG………………………………………….……. 17
2.3 Conceptual Framework…………………………………………………. 18
2.3.1. Product Quality…………………………………………………… 20
2.3.2. Price…………..………………………………………….……..… 21
2.3.3. Advertisement..…………………………………………………… 21
2.3.4. Availability….………………………………………………….… 22
2.3.5. Brand Equity……………………………………………………… 23
CHAPTER THREE: RESEARCH DESIGN AND METHODOLOGY
3.1 Introduction……………………………………………………… 24
3.2 Research Design………………………………………………… 24
3.3 Sampling and Sampling Techniques………….………………… 25
3.4 Data Collection Method………………………………………… 27
3.5 Method of Data Analysis………………………………………... 28
3.6 Reliability Analysis……………………………………………... 29
3.7 Validity Analysis………………………………………………... 29
CHAPTER FOUR: ANALYSIS AND DISCUSSION

4.1 Introduction…………………………….. ……………………………………… 30
4.2 Demographic Profile of Respondents…………………………………..………. 30
4.3 Descriptive Analysis…………………………….. ……………………………… 31
4.3.1. Brand Awareness and Source of Information…...……………………… 31
4.3.2. Brand Choice and Underlying Factors…......…………………….……… 34
4.3.2.1 Laundry Bar Soap……………………...…………………….……… 34
4.3.2.2 Packaged Milk….……………………...…………………….……… 37
4.3.2.3 Toothpaste……………………………...…………………….……… 39
4.4 Regression Analysis (Hypotheses Testing)….. ……………………………… 43
4.4.1. Laundry Bar Soap………………….……...…………………….……… 43
4.4.2. Packaged Milk……………………………..…………………….……… 44
4.4.3. Toothpaste…………………………………..…………………….……… 46
4.5 Discussion of Major Findings………………….. ……………………………… 48
CHAPTER FIVE: SUMMARY, CONCLUSION AND RECOMMENDATION

5.1 Introduction..………………….………………………………………… 52
5.2 Summary of Findings……….…………………………………………… 52
5.3 Conclusion…..………………….……………………………………… 53
5.4 Recommendations………………….…………………………………… 54
REFERENCES
APPENDICES
Acknowledgments
I thank my God for all the strength I have been bestowed to start and finish this route. I would
also like to thank my Advisor, Dr. Negi Rakshit for the guidance and support he has given me
through the process of doing this thesis. All this was a great journey as of dear friends and
special ones.
i
List of Tables
Page 27: Table 3.1: Sample Size Distribution Across the 10 Sub-Cities of Addis Ababa
Page 29: Table 3.2: Reliability of Measurement Items
Page 31: Table 4.1: Summary of Demographic Profile of Respondents
Page 32: Table 4.2: First Brand that comes to Your Mind
Page 32: Table 4.3: Top of the Mind Brands of FMCG by Category
Page 33: Table 4.4: Top three Sources of Information by FMCG Sub-categories
Page 34: Table 4.5: Purchase (Consumption) Trend of Laundry Bar Soap by Brands
Page 35: Table 4.6: Descriptive Analysis of Variables in Laundry Bar Soap Buying Behavior
Page 37: Table 4.7: Purchase (Consumption) Trend of Packaged Milk by Brands
Page 38: Table 4.8: Descriptive Analysis of Variables in Packaged Milk Buying Behavior
Page 40: Table 4.9: Purchase (Consumption) Trend of Toothpaste by Brands
Page 41: Table 4.10: Descriptive Analysis of Variables in Toothpaste Buying Behavior
Page 43: Table 4.11: Regression on Factors influencing Buying Behavior - Laundry Bar Soap
Page 45: Table 4.12: Regression on Factors influencing Buying Behavior - Packaged Milk
Page 46: Table 4.13: Regression on Factors influencing Buying Behavior - Toothpaste
ii
List of Figures
Page 9: Fig. 2.1: The Wheel of Consumer Analysis, adapted from Peter & Olson (2010)
Page 23: Fig. 2.2: Conceptual Model based on the Adaptation of Kotler et al. (2005)
iii
List of Abbreviations
CPG - Consumer Packaged Goods

ETB-Ethiopian Birr
FMCG- Fast Moving Consumer Goods
SPSS- Statistical Package for Social Sciences
iv
Abstract
With the intent of studying consumers who are at the core of everything marketers do, this study
was directed at the fast moving consumer goods (FMCG) segment. Through the development of
a conceptual model that contains five independent variables, this study tried to probe the buying
behavior of consumers in three FMCG products. The selections of the products were made
through the consideration of the major sub-categories in FMCG which are home care, food and
beverage and personal care products. It was hypothesized in this study that product quality,
price, availability, advertisement and brand equity significantly influence buying behavior of
consumers in Addis Ababa. Data was collected through structured questionnaires from shoppers
and consumers of the products under investigation to put the conceptual model in to the
empirical test. The study used descriptive and inferential statistics techniques to analyze the data
and arrive at its findings. One interesting finding was the general support for the hypothesized
significant positive contribution of all the independent variables on consumers' buying behavior
in FMCG. It was also insightful to find out a few notable differences in the set of variables
considered during buying decision making between the sub-categories of FMCG, supporting the
conclusion that category-specific trend of buying behavior exists in any market other than the
contention that all of FMCG is the same. This study was only confined to the list of variables and
product categories discussed above with a focus on Addis Ababa.
Key Words: Consumer Behavior, Fast Moving Consumer Goods, Brand Choice.
v
CHAPTER ONE
INTRODUCTION
1.1 Background of the Study
The field of marketing is innately linked to the needs of all human and social beings. This
organizational function essentially exists to successfully identify and profitably meet the
needs and wants of the consumer. Thus, marketing, as a function, identifies and meets human
and social needs, starting and ending with the consumer in mind so to speak (Kotler and
Keller, 2012).
The essence of marketing is to view offerings, products and services from the consumer’s
point of view- seeing that the right offerings reach the right customer, at the right place, at the
right time and at the right price (Sarangapani, 2009). Schiffman and Kanuk (2010) also
underline that at the heart of the marketing orientation concept- in place since the 1950s –
was the realization of businesses to giving more attention to consumers and their preferences.
This critical element of successful marketing- consumer satisfaction- does not usually happen
arbitrarily, bringing us to the central notion of this study- consumer behavior. According to
Sarangapani (2009), the key to consumer satisfaction lies in understanding the consumer.
Kahn (2006, Page no. 4) defines consumer behavior as "the behavior consumers display in
searching for, purchasing, using, evaluating and disposing of products and services that they
expect will satisfy their needs". Consumer behavior focuses on how individual consumers
and families or households make decisions to spend their available resources on consumption
related items.
The importance of studying the consumer is unanimously agreed by scholars in the field. In
order to succeed in any business and especially in today’s dynamic and rapidly evolving
marketplace, marketers need to know everything they can about consumers. Peter and Olson
(2010) outline the importance of consumer behavior for marketing strategies by iterating that
achieving marketing objectives depends on knowing, serving, and influencing consumers.
1
Marketers also realize that their effectiveness in meeting consumer needs directly influences
their profitability. They think that the better they understand the factors underlying consumer
behavior, the better they will be able to develop effective marketing strategies to meet
consumer needs (Assael, 2001).
This research is undertaken taking all these facts at its foundation. It takes the basic notion
that understanding consumer's behavior is of top importance for marketers and companies.
The focus of this study is the buying behavior of consumers in Addis Ababa with in the Fast
Moving Consumer Goods (henceforth referred as FMCG) industry. An attempt is made to
study the urban consumer profile, buying behavior and the factors behind their choices. A
deeper insight has been sought after into the consumer of Addis Ababa with focus on FMCG.
Menke (2007) defines FMCG as those goods which have very low prices and are
manufactured at low cost as well. They are produced in high volume and it is aimed to
achieve high profit through economies of scale. FMCG, also referred to as consumer
packaged goods (CPG) by Cox (2003), have a short shelf life, either as a result of high
turnover or because of the product perishability. They are generally replaced or fully used up
over a short period of days, weeks, or months, and within one year (Smith, 2010).
Kotler and Keller (2009) said that FMCG are low involvement products purchased by
consumers very frequently without much time on decision making process. Dibb et al. (2006)
also agree with the minimal purchasing effort involved in FMCG which are inexpensive,
frequently purchased and rapidly consumed products. Examples of FMCG include soaps and
detergents, soft drinks, dairy products, confectionaries and deodorants.
The industries concentrated in the FMCG market make up a huge share of a country’s
economy often up to a third of an economy (e.g. India, Bhagat, 2012). The importance of the
growing FMCG industry in the Ethiopian economy is prevalent in the interest of various
researchers who studied the area from different perspectives (Gedamnesh, 2013; Getaneh,
2012; Teshome, 2012; Matheos, 2013; Million, 2013; and others).
Mohamed (2013) mentioned rapid urbanization, increased literacy and rising per capita
income as the key drivers of the FMCG sector. The Ethiopian economy is witnessing all these
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drivers of the sector over the last several years (NBE Annual Report, 2012) validating the
conclusion that FMCG sector of the country is witnessing rapid growth.
The entrance of multinational companies (MNC) within the FMCG industry through Joint
Ventures, stronger export presence and also big investments have also been increasing
significantly in recent years.
 The largest spirits marketer in the world, Diageo has bought Meta Brewery S.C. for $
225 million in 2012 (Diageo, 2012);
 The world’s second-largest brewer by volume SABMiller also invested $20 million
for a 68% stake in Ambo Mineral Water S.C. in 2009 (Bloomberg, 2010);
 The third largest beer company in the world- Heineken also entered into the market
acquiring Harar and Bedele Beer Share Companies for a total of $ 163.3 million
(Fortune, 2012);
 South Africa’s largest consumer goods marketer, Tiger Brands, bought majority share
of a local FMCG manufacturer-East Africa Group in 2010 (News Article, 2010).
An observation of radio show sponsorships on two FM Radio Stations (FBC 98.1 and Sheger
FM 102.1) on December 28, 2013 revealed some interesting facts. The sponsors of the two
popular radio shows on this Saturday night were largely FMCG companies. List of the
sponsors included Meta Beer, Saint George Beer, Hobby Cosmetics, Kangaroo Foam and
Yoko Powder Soap. This amounted to 75% of the sponsors of the radio shows.
The increasing adoption of strong promotional campaigns through wet sampling (as in the
case of MALTA Guinness), outdoor banners, buntings, posters and big billboards show the
efforts of these companies (Colgate-Palmolive, Unilever, Coca-Cola, Heineken, Diageo,
BGI-Ethiopia, Ambo Mineral Waters, Oros Juice).
Europanel (2010), indicated that the shopping frequency and huge number of consumers
purchasing such products play a key role for the well-being of FMCG companies. Hence, the
marketing concept and the growing importance of FMCG discussed above, coupled even
more with a highly important consumers’ re-purchase behavior, makes this specific study of
consumer buying behavior in the Ethiopian FMCG market an essential one.
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1.2 Statement of the Problem
With the established fact that the study of consumer behavior is the most important factor for
developing and executing a successful marketing strategy, the researcher presents the
theoretical and observational gaps to clearly establish the importance of this study.
Fast Moving Consumer Goods industry is a well-studied and explored sector in most markets.
There are countless studies undertaken within the sector by various scholars (Rasool, 2012;
Venkata, 2013; Guru et al., 2009). In these studies the perspectives of branding, brand
management and advertising strategies, brand loyalty, impact of advertisement, brand
awareness and other issues related to FMCG have been addressed.
Research activity is not only limited to these perspectives of FMCG, there are also studies
undertaken with the centerpiece of buyer behavior and the factors behind their choices, which
is the focus of this study (Prialatha & Mathi, 2011; Alex & Menon, 2013; Ullah & Prince,
2006; Ali, et al., 2012; Mahalingam & Kumar, 2012; Srivastava, 2013).
However, all these studies are undertaken in different socio-cultural and economic
environments of countries like India, Pakistan and Bangladesh. The researcher’s inability to
find such studies in this market is indeed one of the basic reasons for the study.
Of course, there are few studies in the Ethiopian context, that focus on some of the other
innumerable aspects of FMCG (Getaneh, 2012; Tekleab, 2012; Teshome, 2012; Matheos,
2013; Yalew, 2013; Million, 2013). These studies explored FMCG from the perspectives of
packaging attributes, sales promotion practices, distribution system and customer based brand
equity. A single study on factors of brand choice in FMCG (only on bottled water) was found
(Gedamnesh, 2013), which again had a focus on branding.
Let alone a clear understanding of the specific factors behind buying behavior for FMCG; an
overall understanding of the Ethiopian FMCG market is yet to be established. And as a result
of this low level understanding, marketers of FMCG find themselves in the crossroads to
develop and implement the appropriate marketing strategy.
4
Therefore, this research looks into the major factors influencing buying behavior in FMCG
market. Hence, with the importance of understanding consumer’s buying behavior
(Schiffman and Kanuk, 2010; Peter and Olson, 2010; Bhagat, 2012), as well as the ubiquitous
nature of FMCG, an inquiry into the area will have a strategic importance and implications.
Furthermore, the FMCG market is witnessing high growth in Ethiopia as a result of the key
drivers like urbanization and rising incomes being witnessed in the country (Ali, 2013). The
entrance of global FMCG companies into the market is also another indication of the sector’s
growth. Hence, manufacturing and pushing products into the market will no longer be a
feasible strategy, necessitating an understanding of the consumer and implementation of a
strong marketing strategy based on that knowledge for a sustainable growth and success.
This research is undertaken with the consideration of all these- necessity of having a deeper
understanding of the consumer for FMCG marketers; limited body of extant knowledge in the
area as well as the growing importance of the sector in the country. Thus this study is
undertaken to examine the major factors influencing of consumer behavior of fast moving
consumer goods.
1.3 Research Questions
To understand and explain the problem being discussed, this study raised the following
questions.
1. What are the underlying factors influencing consumers’ buying behavior of FMCG?
2. Do consumers of FMCG behave in predictable and uniform manner towards their

buying behavior across sub-categories?
3. What would be the ideal marketing mix and strategies that a company should
implement to have the consumers react in the most desirable way towards a specific
FMCG brand?
5
1.4 Objectives of the Study
This study is primarily aimed at distinguishing the most important factors affecting the
consumer's decision and buying behavior within the various sub categories of FMCG.
In addition, the study also has the following specific objectives:
 To find out whether the influence of variables being studied are same across the
various subcategories of FMCG
 To present the demographic profile of FMCG shoppers in Addis Ababa,
 To propose an ideal mix of marketing mix or strategy that will have the most
desirable impact on consumers’ FMCG buying behavior.
1.5 Definition of Terms
Fast Moving Consumer Goods (FMCG): also referred to as Consumer Packaged Goods
(CPGs), are those goods that have relatively low prices, are produced in high volume to
achieve high profit through economies of scale, have a short shelf life and are purchased by
the consumers frequently (Menke, 2007, Cox, 2003).
Consumer Behavior: the process by which individuals search for, select, purchase, use, and
dispose of goods and services, in satisfaction of their needs and wants. The study of
consumer behavior does not only include reasons for buying but also the consumption
process of the consumer at large (Blackwell et al., 2001)
Buying Behavior: is slightly different from consumer behavior as it emphasizes on the actual
buying (purchasing) behavior of the consumer and the factors influencing the decision-
making process. This is inferred by Solomon et al. (2006) in their explanation of consumer
research broadening from its original focus on buying behavior to its focus into the general
consumer behavior also taking into consideration what happens before and after the purchase.
Brand Equity: refers to the concept as presented by Keller (2004) to be composed of two
building blocks which are brand awareness and brand image.
6
1.6 Significance of the Study
This is a study undertaken in the Ethiopian market. In this market the practice of marketing
has much to mature and become an advance discipline and practice. Hence, this research will
contribute for the development of the discipline in this environment.
More specifically, research endeavors are limited within the FMCG market. This study,
which is undertaken in the area of consumer behavior in FMCG, will contribute to the
development and effective implementation of marketing strategies by FMCG companies.
Wiid and Diggines (2009) also underline the importance of sufficient and relevant
information for planning and making successful decisions about a marketing strategy.
Additionally, this research will serve as a point of departure for further research by marketers
and academicians. This is because the researcher was not able to find an account of a
scientific study on the area with similar or related route as adopted in this study.
1.7 Scope and Limitation of the Study
The scope of this study is confined to the exploration and explanation of the Addis Ababan
consumer buying behavior of FMCG. It has identified the underlying factors behind the
buying behavior of the city’s consumers with regards to the widespread sector of Consumer
Packaged Goods (CPGs).
This study focuses on five key influence factors selected from models of buying behavior in
FMCG proposed by Abbas et al. (2012) and Ullah and Prince (2006). These are: Product
Quality, Price, Availability, Advertisement and Brand Equity. Influence of these factors on
buying behavior of consumers in Addis Ababa is empirically tested with selected products
falling within the three sub-categories of FMCG- Laundry Bar Soap, Packaged Milk and
Toothpaste Products.
Two major limitations of the study relate to its scope. The results of the study cannot be taken
to explain the factors behind consumer’s buying behavior of FMCG in totality. Though the
researcher believes the study to be the first in trying to identify and compare buying factors in
7
more than one FMCG product, it is not an extensive one. This is because of the resource
(time and financial) limitations borne by the researcher. The other limitation is related with
the number of factors explored in the study. There are a myriad of factors that could go into
the consumers' mind to influence buying behavior, but were left out to stand true to one of the
basic principles in research - focus.
Hence, the researcher believes this study should further be undertaken on a wider range of
FMCG products, incorporating more factors of consumer buying behavior as well as on more
regions of the country to ensure the comprehensive analysis and reporting of factors
influencing buying behavior for the whole country.
1.8 Organization of the Study
The study is organized under five chapters. Chapter one includes background of the study,
statement of the problem, basic research questions, objectives of the study, hypothesis,
definition of terms, significance of the study, scope and limitations of the study.
Chapter two includes review of relevant related literature. In this second chapter, theoretical
and empirical foundations of the study are presented. The conceptual model as well as the
hypotheses of the study are laid out in this chapter.
Chapter three encompasses research design and methodology which includes description of
the population, sampling, data collection and data analysis methods. In chapter four results
and discussion of the study are presented in detail.
The last chapter presents the summary, conclusions and recommendations of the study. The
summary of findings was made based on the results discussed under chapter four. The
conclusions were drawn from the summary of findings with practical recommendations at the
end.
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CHAPTER TWO
LITERATURE REVIEW
2.1 Introduction
In this chapter the theoretical and empirical foundation of the study are outlined. The
conceptual model as well as the hypotheses of the study are advanced.
2.2 Theoretical Framework

2.2.1 Consumer Behavior: Definition
The marketing concept has long been argued and established as the appropriate philosophy of
doing business. This concept states that an organization should satisfy consumer needs to
make profit (Peter & Olson, 2010). This establishes understanding of the consumer at the
center of the marketing concept and the necessity of research into consumers behavior.
The American Marketing Association (AMA) (1995) defines consumer behavior as “the
dynamic interaction of affect and cognition, behavior, and the environment by which human
beings conduct the exchange aspects of their lives.” In other words, consumer behavior
involves the thoughts and feelings people experience and the actions they perform in
consumption processes. It also includes all the things in the environment that influence these
thoughts, feelings, and actions.
Peter and Olson (2010) forwarded insightful framework that links all the elements of this
important definition. Marketing strategies are outcomes of the constant relationships and
interdependences between the consumers’ affect and cognition, their actions and their
environment in the Wheel of Consumer Analysis Model by the authors. As such, consumer
behavior reflects the actions of the consumer that prevail as a result of the consumers’
knowledge and feelings as well as the consumer’s environment.
Fig. 2.1: The Wheel of Consumer Analysis, adapted from Peter & Olson (2010).
9
On top of the marketing concept, this framework also indicates that effective marketing
strategies are at the core of understanding the consumer (his/her cognition, affect and
behavior). Solomon et al. (2006) also indicate that up-to-date knowledge of consumer
characteristics plays an important role in many marketing applications as consumer behavior
also has dynamism. This importance of consumer behavior and its dynamic nature brings the
key role of continuous consumer research laying the foundation of this study.
Starting from the pioneer book by Engel, Kollat and Blackwell, Consumer Behavior (1968),
there have been extensive research and progressive developments in the field. The host of
theoretical and empirical data that could be consulted throughout this work of study is,
however, limited within the Ethiopian marketing environment. In fact, this was reported in
the first chapter and the purpose of this study is to try to fill this strategic gap of limited
research work in this market.
Consumer Buying Behavior
Kahn (2006, Page no. 4) defines consumer behavior as "the decision-making process and
physical activity involved in acquiring, evaluating, using and disposing of goods and
services". As this implies, consumer behavior is a general and broad construct that takes into
consideration what happens before and after the purchase. For the purpose of this study,
however, the researcher will only dwell on consumer buying behavior which refers to the
decision-making process and the successive physical activity of buying goods and services.
Research on consumer's buying behavior has been the focus of various scholars and
marketing practitioners resulting in the identification of a host of various influencing factors
and the development of different models. Personal, cultural, socio-demographic and
psychological factors are placed at the broader level (Kotler & Armstrong, 2014) with
situational factors like time of the day or product characteristics also influencing buying
behavior (Wright, 2006). In this chapter, the researcher presents theoretical and empirical
review of consumer's buying behavior to finally arrive at a model of factors influencing
buying behavior in FMCGs.
10
2.1.2 Theories of Consumer Behavior
This section presents a summary of the theoretical foundations in the field of consumer
buying behavior. Summary of the most important models of consumer behavior is presented
to guide and establish a useful framework within which this study of buying behavior in
FMCGs was undertaken. This section, in addition to the focus group discussion with
researchers, marketing and brand managers in the FMCG sector of this market which is
discussed in the next chapter, is at the core of the researcher's attempt to conceptualize and
build the model which is employed in the study.
The researcher's decision to forward and use a conceptual framework based on previous
studies is based on the fact that there are many varying models to select from. As Peter and
Olson (2010) also described it, there is no any single approach fully accepted, nor is it likely
that a single, grand theory of consumer behavior can be devised that all researchers would
agree on.
1. Traditional Models of Consumer Behavior
Consumer behavior is a relatively new field of study with no historical body of its own
research. As such, it is a sub-filed within the discipline of marketing which has heavily
borrowed from other scientific disciplines like economics, psychology and sociology
(Schiffman & Kanuk, 2010). Below are the earliest models as borrowed from these other
disciplines.
a. The Economic Man Model
Utility maximizing behavior of rational and well informed consumers is the concept at the
foundation of this model. The neo-classical economist Alfred Marshal (1890) formulated the
first model of consumer behavior based on the theory of marginal utility. Marshall's
utilitarian economic consumer seeks to get the most utility for his or her money spending the
minimum amount for maximum gains in the different scenarios of price, substitute products
and income accordingly. This model is often criticized for its assumptions of full and relevant
information, homogeneity between consumers and the consistency of rational behavior.
11
b. Psychological Models
For psychologists, attributes that include perception, motivation, learning, attitude and
personality were more important and these have been presented in varying models that can
depict buying behavior. Three of the most important models are:
 Hierarchy of Needs Model: Abraham Maslow (1954) came up with a theory of

motivation in the form of a hierarchy of needs. This model suggests that consumers'
buying behavior will be influenced by the specific need state at a particular time from the
physiological, safety, social, ego and/or self-fulfillment needs. This need will convert into
motivation which will direct the purchasing process and behavior of consumers for
psychologists.
 The Conditioned Consumer (Learning) Model: this is based on the stimulus-response
model of human psychology. Ivan Pavlov's classical conditioned consumer learns through
a passive, low-involvement process of responding automatically to frequently repeated
cues and rewards. This model suggests that much of our behavior is automatic,
unthinking, knee-jerk reactions to environmental stimuli. For this model the consumers'
buying behavior is influence by their association of a specific stimulus to a specific
response.
 Freud's Theory of Consumer Behavior: for Sigmund, the emotional, hedonic,
psychoanalytical consumer is driven by sub-conscious motives, personality traits,
unreasoned instincts, symbolic motives and the need for pleasure. This suggests that
marketers shall use motivation research to discover and act on such motives that
consumers are ordinarily unable or unwilling to discuss and then appeal to them in
marketing communications.
c. Sociological Model
The role, status, interaction, group influence, social class and others do have an influence on
the buying behavior of consumers. As part of the society a consumer's buying behavior is
influenced by the various groups in society. Primary groups of family, friends and close
associates exert a lot of influence on an individual's buying behavior.
12
Thorstein Veblen's social psychological consumer (Veblen, 1899) is concerned with
conspicuous consumption which is a buying behavior entirely related to public display of
economic power.
2. Contemporary Models
The earliest discipline-specific models of buying behavior laid the foundations of today's
advanced field of consumer behavior. Counting on these models to practically explain the
buying behavior will not be correct as this call for a multi-disciplinary approach to
incorporate and explain all the multifaceted set of entities involved in consumer's buying
behavior.
Consequently, some of the best-known comprehensive consumer decision-making models

were developed in the 1960s and 1970s as part of a developing discipline of consumer
behavior. Among these are models by Howard and Sheth; Nicosia; Engle, Roger and
Blackwell; and Kotler (Tyagi & Kumar, 2004).
a. Howard-Sheth Model
Utilizing the learning theory thoroughly and systematically John Howard has come out with
the 1st truly integrative model of buyer behavior in 1963 (Du Plessis et al, 1991). He
introduced the difference between problem solving, limited problem solving and automatic
response behavior as the three levels of decision making.
A more meaningful elaboration has been provided in Theory of Buyer Behavior (1969) by
Howard and Sheth. This model is considered an important landmark in the development of
the theory of buyer behavior by considering three key variables- perception, learning and
attitude formation (Prasad, 2009). It is one of the earliest depictions on the configuration of
behavioral, situational and economic variables affecting consumer decision processes.
The model is essentially an attempt to explain brand choice behavior over time and therefore,
is especially pertinent to this research study. The model relies on four major components-
stimulus inputs, hypothetical constructs, response outputs and exogenous variables.
13
The Input Variables: Consumers learn by finding out the relevant information about
products from two sources of information, the commercial and social sources. The
information is used for comparison of alternative brands according to various choice criteria.
The commercial sources of information focus on the attributes of a product or brand (i.e.
quality, price, distinctiveness, service and availability). And the information from the buyer's
social environment come from family, reference groups and social class- and these influences
must be internalized by the consumer before they can affect the decision process.
Hypothetical Constructs: are psychological variables such as motives, attitudes, perception

and learning which influence the consumer decision process by setting the frameworks within
which the consumer receives and interprets the stimuli from above.
Output Variables: these are the five observable responses from the buyer with the ultimate
output of actual purchase. It flows sequentially from attention to brand comprehension to
brand attitude to purchase intention before the final action of purchasing.
Exogenous Variables: The model also includes some exogenous variables which influence
all or some of the constructs explained above and through them, the output. They influence
the consumer indirectly and vary from one consumer to another. These are the individual’s
own personality traits, social class, importance of purchase and financial status.
b. Nicosia Model
Francesco Nicosia, one of the prominent motivation researchers, published an influential

comprehensive model of buyer behavior in 1966 (Nicosia, 1966). Nicosia divided the model
into four basic parts or fields as he termed them.
Of the four fields outlined in this model, field one comprise product attributes and
communication on the one hand and consumer characteristics on the other. As the message is
received and reacted upon, it leads to the formation of a product or brand attitude. This
attitude serves as an input for field two, the reaction field, where the consumer goes for
research and evaluation. Field three is the act of purchase or the decision making. Field four
highlights the post-purchase behavior and use of the product, its storage and consumption.
14
The feedback from field four is fed into the firm's attributes or field one, and the feedback
from the experience is responsible for changing the pre-disposition of the consumer and later
his/her attitude towards the product.
c. EKB (Engel-Kollat-Blackwel) Model
These scholars (Engel et al., 1969) applied the term 'multidimensional' to their model to refer
to the fact that many processes intervene and mediate between exposure to stimuli and final
outcome of behavior. The model consists of four components:
 Information Processing: incoming marketing and non-marketing stimuli are

processed through the distinct sequential phases of exposure, attention,
comprehension and retention.
 Central Control Unit: this is the individual's own command center including
memory and basic facilities for thinking and directing behavior such as information,
experience, evaluative criteria and attitudes each of which is affected by personality.
 Environmental Influences: These are the environmental influences of income, social
class, family influences, physical influences and other considerations. All these
factors may favor or disfavor the purchase decisions.
 (Consumer) Decision Process: consist problem recognition, internal and external
search, evaluation, purchase and post-purchase behavior. This key part of the model
makes the foundation of the five stage model of consumer's decision making. The
decision process may not always pass through the complete sequential chain in which
case is a limited or habitual decision process.
d. Kotler's Behavioral Choice Model
The inputs or buying influence in this model include communication about available brands,
their prices, qualities, availability, service, options and images. The channels through which
the information reaches the buyer are advertising media, sales men, acquaintances, the
buyer's family and observation. After processing of the inputs in the buyer's mind ('black
box'), the buyer's responses will be manifested in the form of decisions regarding product
choice, dealer choice, quantities to buy and frequency of purchase.
15
This model can be viewed in terms of the three stages involved: stimuli, buyer’s black box
and buyer’s response. The consumer gets the input from the marketing effort of the firm (4
Ps) and other stimuli which will be processed within the specific characteristics of the buyer.
2.1.3 Fast Moving Consumer Goods
FMCG, also referred to as Consumer Packaged Goods are low-involvement products which
have relatively low prices and short shelf life (Menke, 2007, Cox, 2003). These products
include body care, home care, food and beverage products bought frequently and with great
routine (Laurent & Kapferer, 1985). According to a book, Selling FMCGs, (Gough, 2003),
main segments of FMCG are:
1. Personal Care- which include toothpaste, hair-care, skincare, soap, cosmetics and
paper products such as tissues and sanitary towels;
2. Household Care- fabric wash (laundry soaps and synthetic detergents) and household
cleaners (such as dish/utensil cleaners, air fresheners and insecticides);
3. Branded and packaged food and beverages- soft drinks, packaged milk, cereals,
biscuits, snack food, chocolates, ice cream, tea, coffee, vegetables, meat, bottled
water, etc.
This study investigates factors influencing buying behavior within these sub-categories of
FMCG. A single, most important product is selected from each of these sub-categories:
toothpaste, laundry bar soap and packaged milk respectively. The rationales being:
 Generalization of buying behavior in FMCG can reasonably be made if at minimum

all the major sub-categories or segments are addressed with selected products;
 Comparison of buying behavior across the product categories of FMCG can be made
and more useful recommendations can be made.
 A research (Alex & Menon, 2013) had concluded that the FMCG category should not
be treated as a single sector, as a result of the findings that revealed consumers to
behave differently between the various sub-categories for the researchers.
16
Doing the study on three varied products made the data collection and analysis more difficult
and time consuming on the researcher. However, the researcher accepted this in order to be
able to reasonably generalize about factors influencing buyer behavior within the whole
category of FMCG. This had also enabled the study to draw comparative conclusions about
factors influencing buyer behavior across the sub-categories. The researcher has already
mentioned that the attempt to find a study with such magnitude in this market was not
fruitful.
2.1.4 Consumer Behavior in Fast Moving Consumer Goods
An important point from the above models that the researcher further discusses is the level of
consumer's involvement in the product and/or purchase process. Since it was first analyzed
within marketing by Engel et al. (1969), product involvement has been extensively used as a
mediating variable in consumer behavior (Dholakia, 1998). It is commonly defined as a
consumer's enduring perceptions of the importance of the product category based on inherent
needs, values and interests (Mittal, 2004). Pride and Ferrell (2010) consider level of
involvement as the degree of interest in a product and the importance the consumer places on
that product.
Level of involvement determines the depth, complexity and extensiveness of cognitive and
behavioral processes impacting the process as well as the type of the consumer's decision
making or buying behavior (Chakravarti & Janiszewski, 2003). Therefore, level of
involvement is a vital framework for understanding consumer buying behavior.
Starting from earlier works (e.g. Engle et al., 1969) till the recent ones (e.g. Neshat et al.,
2013), involvement is considered as a significant variable explaining consumer buying
behavior. Its impact is reflected on the determination of the type of decision making route the
consumer will be taking: routinized response behavior, limited problem solving or extended
problem solving (Pride & Ferrell, 2010).
A consumer uses routinized response behavior when buying frequently purchased, low-cost
items that require very little search-and-decision effort. Buyers engage in limited problem
solving when they buy products occasionally or when they need information about an
unfamiliar brand in a familiar product category. Third type of problem solving, the complex
17
one, occurs when purchasing unfamiliar, expensive or infrequently bought goods- a car or
home for instance. These routes are determined by level of involvement which depends on
situational and environmental variables as well as characteristics of products and consumers.
Our focus in this study- FMCG-are inexpensive, rapidly consumed, frequently purchased
products with minimal purchasing effort (Dibb et al., 2006). For Kotler and Keller (2009),
likewise, FMCGs are low involvement products which are purchased by consumers very
frequently without spending much time on decision making process.
This doesn’t mean that consumers will buy these products arbitrarily, or without any factors
influencing their purchase behavior. It rather leaves out the extended problem solving
decision process and its attributes such as the need for lots of information, complex set of
evaluative criteria, high potential risk as well as long time for decision making (Bulmer,
1998; Fill, 2005; Tanner & Raymond, 2010).
Marketers of low-involvement products often use price and sales promotions to stimulate
product trial (Kotler et al., 2005). Key buying influence factors for such products include
brand awareness, visibility in store, availability and advertising (McDonald & Christopher,
2003).
The factors hypothesized to influence buying behavior in this study are results of these
previous studies. The researcher hypothesizes that more apparent cues like price, quality,
advertisement, availability and brand awareness will fall within the sphere of influencing
routinized buying behavior. This is systematically developed and presented in the next
section of this chapter.
2.3 Conceptual Framework
Forwarding a conceptual framework for use in this study is important because of a couple of
reasons. Adopting any one of the above grand models will be inappropriate as these models
consider the consumers mostly as rational people who spend a considerable amount of time
on searching information, evaluating alternatives and then choosing the best product.
However, for many products and especially for the category in this study, consumers will just
18
spend a little time and effort without engaging in the sequential activities suggested
(Bozinoff, 1982).
These grand models have also been criticized for generalizing the decision-making process
for any consumer product defying the fact that all consumers (or purchase situations) will not
pass through the extensive five stages of decision making (Bums & Gentry, 1990). In fact
scholars have even discussed that in many cases grand models complicate a situation that is
quite straightforward (Erasmus et al., 2001). Others confirmed that a model that deals with all
aspects of consumer behavior in complete detail may be theoretically sound but hopelessly
complex in terms of its data requirements and potential for calibration (Lilien, Kotler &
Moorthy, 2003).
Various studies have used different models that emphasized on different factors that influence
consumers' decision making. For instance, Ali et al. (2012) found out that retailers'
recommendation, advertisement, price, product quality and reliability are the key influencing
factors in rural purchase of FMCGs in India. For Ullah and Prince (2006), the primary factors
in Bangladesh include sales promotion, unavailability of brand, product features, end of aisle
display and in-store TVC.
The adoption of models from other studies without any adjustments and revisions do also
have its own downsides. An instance could be the inclusion of irrelevant factors such as in-
store TVC into a market where we don’t observe this tool being employed by stores. In their
critical review of consumer decision-making models, Erasmus et al (2001) have underlined
that a study of consumer decision-making behavior should be context specific and product
specific to provide new insights and to contribute to theory building in the domain of
consumer science.
According to Lilien et al. (2003), a buying behavior model that we use in a given situation
shall depend on the objectives of the model-builder, the important market phenomena and the
availability of relevant theories and data to support the analysis. In fact, a model by its very
nature is defined as a representation of some or all of the properties of a large system
(Goodhope, 2013). Understanding of the decision making process and the establishment of
theory are two of the important benefits from having a buying behavior model (Engel et al,
1995; Du Plessis et al, 1991).
19
This study uses an adapted framework of the stimuli-black box-response model advanced by
Kotler et al. (2005). This model will focus at its best on the marketing factors or stimuli part
of the broader model which also incorporates cultural, social, personal and psychological sets
of factors (Ibid).
Scientific rationale behind the selection of the factors has been provided by Erasmus et al.
(2001) who suggested that use of grand models for all circumstances will not be
representative and practical on top of hardly being accepted by researchers (Peter & Olson,
2010). The conceptual framework, forwarded based on the extant literature as well as market
and product specific characteristics serves as the foundation for the hypotheses of the study
forwarded below.
2.3.1 Product Quality
Product quality is a critical element for consumer decision making. Consumers always
compare the quality of alternatives with regard to price within a category (Jin & Yong, 2005).
According to Davis et al. (2003), perceived quality is directly related to the reputation of the
firm that manufactures the product. Perceived quality is also regarded as the degree to which
a product provides key customer requirements and how reliably these requirements are
delivered. Whereas Aaker (1991) and Zeithaml (1988) said that perceived quality is not the
actual quality of the product, rather, it is 'the consumer's judgment about a product's overall
excellence or superiority'. Product quality is conformance to requirements (Russel & Taylor,
2006) encompassing the features and characteristics of a product that satisfy stated needs.
Quality is one of the core factors hypothesized to influence buying behavior of FMCGs in
this study. Previous studies has investigated and found out that it is significantly related to
buying behavior in FMCGs (e.g. Ali et al., 2012; Mahalingam & Kumar, 2012; Ullah &
Prince, 2006). In the study, the hypothesized impact of perceived quality is measured by a
scale developed based on theoretical definitions and empirical measurements from previous
studies.
H1: Product quality significantly influences buying behavior of FMCG consumers in Addis
Ababa.
20
2.3.2 Price
Perceived price is how a consumer perceives a price as high, low or fair and it has a strong
influence on purchase behavior. There is a significant amount of research that proves price
consciousness as an important variable in consumer purchase decision making (e.g.
Lichtenstein et al., 1993; Estalami & Lehman, 2001; Moon et al., 2006; Campbell, 2007).
Within the category of FMCG, price has been one of the most hypothesized, tested and
confirmed influencing variable of consumer's buying behavior, as well. Alex and Menon
(2013) found out that price perception plays an important role in purchase decision making in
FMCG. Others like Miremadi & Faghani (2012), Ali et al. (2012), as well as Gedamnesh
(2013) found out that prices have significant influence on buying behavior of FMCGs. In this
study, the influence of price will be investigated in the different product segments of FMCG.
H2: Price significantly influences buying behavior of FMCG consumers in Addis Ababa.
2.3.3 Advertisement
Advertising is a core component of integrated marketing communications (IMC). IMC

describes the process of developing and coordinating a communications program that allows
a brand to reach a wide variety of consumers through the use of various media channels
(Kotler et al., 2010; Eagle and Kitchen, 1999). Advertising has evolved to become a vital
communications system to help consumers make every day purchase decisions in their lives
(Belch & Belch, 2003).
Impact of advertising on behavior of consumers in FMCG has been the focus of numerous
researchers who found out that consumers are highly influenced by advertising in their
preference to a brand of FMCG (e.g. Shukla et al., 2012; Rasool et al., 2012;Rahman, 2012).
Consumers take the "peripheral route" to persuasion when they are dealing with purchase
decision in low-involvement products (Bian & Moutinho, 2011). In other words, consumers
will base their buying behavior for FMCG products on superficial analysis of readily
available and salient factors presented to them through advertisement or other form of
marketing communication. This leads to our third hypotheses.
H3: Advertisement significantly influences buying behavior of FMCG consumers in Addis

Ababa.
21
2.3.4 Availability
Consistency of supply and availability at convenient locations are vital for choice of a brand.
According to Lin and Chang (2003) convenience of a brand has a significant impact on
consumers' brand choice of any product.
More specifically, Dechernatory and Mcdonald (2003) expound consumers are not motivated
to search out for low involvement products. Any out of stock situation results in consumers
switching to alternative brands. This usually happens in FMCGs as also reflected in the solid
work of FMCG marketers to ensure wide availability of their brands. A global ranking of
most chosen consumer brands (Kantar World Panel, 2013), revealed that strongest brands
have the best distribution networks reaching out existing and new consumer segments.
Corsten and Gruen (2013) found out the impact of availability on buying behavior of FMCG
consumers. Peter and Donnelly (2007) also indicated in their book that when consumers are
seeking low involvement products, they are unlikely to engage in extensive search, making
easy accessibility and availability an important factor.
On top of these, the researcher believes that Ethiopia has much to grow to become a
competitive, branded market place for FMCGs. The absence or the late entrance and
announcement of FMCG MNCs just this time (Bloomberg, 2014; Diageo, 2012) reflects
stage of the market where distribution networks are yet to be built and strengthened. Hence,
accessibility and availability of products is hypothesized to influence buying behavior of
consumers.
H4: Availability significantly influences buying behavior of FMCG consumers in Addis

Ababa.
2.3.5 Brand Equity
An authoritative scholar, Kevin Keller (1993) has developed the construct and its
measurements in an influential article. The two building blocks of brand equity are brand
awareness and brand image. Brand awareness which is further classified into brand
recognition and recall doesn’t guarantee purchase intentions, if not coupled with positive and
22
favorable association which Keller called brand image. Brand equity is defined as the
differential effect of brand knowledge on consumer response to the marketing of the brand
from the perspective of the consumer.
In relation to the current study, researchers have also been focusing on brand equity as one
influence on buying behavior. For instance, Mahalingam & Kumar (2012) found out that in
addition to product quality, brand awareness is also the most important factor in buying
behavior. Brand awareness is said to precede all other steps in the buying process (Rossiter &
Prey, 1987).
H5: Brand Equity significantly influences buying behavior of FMCG consumers in Addis
Ababa.
PRODUCT QUALITY
PRICE
AVAILABILITY FMCG BUYING
CONSUMER'S BEHAVIOR
ADVERTISEMENT
'BLACK BOX' (Choice of a
BRAND EQUITY
Brand)
(i.e., Brand Awareness
+ Brand Image)
Fig. 2.2: Conceptual Model based on the Adaptation of Kotler et al. (2005)
23
CHAPTER THREE
RESEARCH DESIGN AND METHODOLOGY
3.1 Introduction
The relevant theoretical and empirical foundations of this study have been discussed and the
conceptual framework for the study has been successfully developed. The hypotheses of the
study which will be tested and reported in the next chapter have also been forwarded in the
previous chapter.
In this chapter, the appropriate research design, sampling techniques, data collection and
analysis methods are presented.
3.2 Research Design
As a plan and framework of a research project, the research design guides the data collection
and analysis procedures to ensure that the study will ultimately address the relevant problem
(Wiid & Diggines, 2009). This study primarily adopts a quantitative approach.
The study employed a mix of research designs to attain its objectives. An extensive review of
the literature and previous studies has been undertaken to develop the conceptual framework
or model which was deployed into the empirical test. This exploratory design was also used
for the selection of relevant variables hypothesized to influence the buying behavior of
FMCG consumers as well as to propose the important product sub-categories of FMCG.
In addition to the use of related literature, the researcher conducted a focus group discussion
(FGD) to reach at the relevant, market specific variables of buying behavior and to select the
products for investigation. This FGD was moderated between FMCG marketing practitioners
in this market environment with the intention of validating the argument from the theoretical
and empirical literature. This discussion led to the reasonable confirmation of the five
independent variables as pertinent and the choice of the three most appropriate products from
each of the FMCG sub-categories.
24
This is followed by a descriptive analysis of the cross-sectional primary data collected
through questionnaires to accomplish the objective of presenting the profile of FMCG
consumers as well as most influential sources of information for brand awareness in Addis
Ababa. This analysis has been done for all the three products selected in this study.
Causal analyses between the dependent and independent variables were undertaken for the
same three products based on the primary data collected. This led to the confirmation and
rejection of the hypotheses and revealed a detailed analysis of the relationships between
buying behavior and the handful of the other underlying factors. This analysis forms the core
findings of the study attaining the primary objective of distinguishing the key underlying
factors. This also revealed the differences among the product sub-categories and the
magnitude of the impact of each hypothesized independent variable.
3.3 Sampling and Sampling Techniques
Population of this research is the population of Addis Ababa, even though the researcher
believes some degree of inferences can be made about the buying behavior of consumers
elsewhere in the country based on results. The sampling frame includes consumers of FMCG
in the city. And the sample units were chosen based on the non-probability sampling method
of convenience sampling, as the sample units were found dispersed across the city.
The researcher employed the judgment that respondents found conveniently at shopping
centers and kiosks around the sub-cities would highly be representative of the study's sample
frame and adopted this procedure in distributing the questionnaires.
For a very large size of sample population, where a comprehensive survey would be difficult,
a scientific sample must be taken out of the population. Naturally the requirement is that the
sample must be as representative of the population as possible (Wiid & Diggines, 2009).
In 2004, Kothari explained that there are two approaches for the determination of sample
size. One of these approaches is capable of giving a mathematical solution and as such is a
frequently used technique for determining a sample size. This calculation gives a sample size
that ensures a desired level of precision rate and confidence level.
25
For this study a 95% confidence level was taken with a confidence interval of 5. According
to the 2007 CSA Census, the population of Addis Ababa is 3,430,000. With a 95%
confidence level and a confidence interval of plus or minus 5, the sample size of this research
will be 384 respondents following the Kothari way of sample size calculation which follows
the following formula.
Where,
N = size of population
n = size of sample
e = acceptable error (the precision)
p = standard deviation of population
z = standard variate at a given confidence level.
Adopting convenience sampling in which the population elements are selected based on ease
of access (Kothari, 2004) the researcher selected respondents based on their availability to the
survey. The researcher also coupled this sampling method with the expert judgment that the
respondents should be those who either consumer or purchase the products under
consideration. 384 respondents were selected and interviewed during or just after an actual
shopping activity. This has been useful in alleviating the memory bias (Xu & Griffiths, 2008)
as well as in improving the strength of the sample representativeness as the sample selection
was undertaken in kiosks/shopping centers across all the ten sub cities of Addis Ababa.
For the collection of data from actual consumers of FMCG dispersed all over the city, the
calculated sample size was further broken down into the 10 sub cities based on the method of
proportional allocation explained by Kothari (2004). This method allocates the sample size in
such a way that the sizes of the samples from the different strata are kept proportional to the
sizes of the strata. The following table shows this configuration of sample size distribution.
26
Table 3.1: Sample Size Distribution across the 10 Sub-Cities of Addis Ababa
Sub-City Population Sample Size Sub-City Population Sample Size
Addis Ketema 255092 36 Kolfe 428654 60
Arada 212009 30 Nifas Silk 316108 44
Lideta 201613 28 Yeka 346484 49
Kirkos 220991 31 Bole 308714 43
Gulele 267381 37 Akaki Kaliti 181202 25
3.4 Data Collection Methods
The two most important research instruments for collecting primary data, the questionnaire
and focus group discussion (Wiid & Diggines, 2009) are employed in the survey research.
The questionnaire was carefully developed in a way that will measure the impact of the
proposed independent variables on the dependent variable. The type of questions, form,
wording and sequences were also considered carefully. It was translated into Amharic to help
easy comprehension and accurate response of respondents.
The collection of primary data is carried out during or immediately after an actual shopping
of FMCG by respondents across all the 10 sub-cities using these structured questionnaires.
The questionnaire was developed based on the hypotheses of the study. The questionnaire
consist a set of descriptive items that measure the dimensions of the hypothesized factors
which have been borrowed from the model of CBBE (Keller, 1993) and other related studies
Gedamnesh, 2013, Yalew, 2013, Getaneh, 2012, Alex & Menon, 2013). These items are
characterized by high reliability and validity in measuring the constructs they are supposed to
measure as demonstrated in earlier research studies.
This self-administered questionnaire developed for each of the three products with a five
point Likert scale is distributed to the sample units through the researcher and some field
assistants.
The second important source of primary data, focus group discussion (FGD) was also
employed for validating the conceptual framework designed based on the literature review.
The FGD was conducted between a group of FMCG Marketers including a handful of Brand
27
Managers, Marketing Managers and Market Researchers within the Ethiopian market. A
discussion guide was prepared and appropriate scientific procedures were followed to garner
an unbiased and useful data from this discussion.
In addition to investigating relevance of the conceptual model, this primary data was also
used to decide on the 3 products of FMCG that appropriately represent the whole category.
This enabled the research findings to be generalizable across FMCG and described the
divergences between sub-categories.
As discussed, secondary data was also used to primarily construct the basic framework of the
study before proceeding to primary data.
3.5 Method of Data Analysis
For the analysis of the primary data, descriptive and inferential statistical analysis techniques
were employed. With regards to the descriptive analysis percentages, means, standard
deviations and frequencies have been calculated. This analysis revealed the demographic
profile of FMCG shoppers and consumers in the city, the list of most influential variables on
buying behavior as well as differences in buying behavior between the three categories of
FMCG products.
With regards to inferential statistics, correlation as well as a regression analysis was used to
investigate the most important questions and objectives of this study and to arrive at the core
findings of the study with regards to the hypotheses forwarded. The correlation analysis
reports on the magnitude and direction of relationships between variables in the study. These
variables are the five independent variables and the dependent variable (buying behavior).
A multiple regression analysis is employed in order to investigate the impact of the

hypothesized factors on the buying behavior or decision making process of FMCG consumers
in Addis Ababa. This has enabled hypotheses testing revealing which of the hypothesized
independent variables have a statistically significant influences on the decision of the buyer
in each of the three products. The regression analysis also reveals the amount of variance
explained by the conceptual framework forwarded.
28
3.6 Reliability Analysis
The internal consistency or reliability of the measurement items under each variable or
construct is an important test of sound measurement. Cronbach's Alpha values greater than
0.7 indicate higher degrees of internal consistency (Zikmund, Babin & Griffin, 2010). This
coefficient was calculated for all items under each variable and the results show an acceptable
level of reliability as shown in table 3.2.
Table 3.2: Reliability of Measurement Items

Variables Cronbach's Alpha Number of Items
Product Quality .783 3
Perceived Price .761 3
Availability .802 3
Advertisement .763 3
Brand Equity .717 3
FMCG Buying Behavior .812 5
Collective All Variables .752 20
Source: Survey Data (2014)
3.7 Validity Analysis
The content validity of measuring instruments provides the assurance that the instruments
give adequate coverage of the construct under study (Kothari, 2004). Accordingly its
determination is primarily judgmental and intuitive, and as a result the researcher has
validated the content of the measuring instruments in the questionnaire through help from the
research advisor and discussion and reviews with peer researchers.
The other type of validity, which is construct validity, has been validated through the analysis
and calculation of Pearson Correlation. It has been confirmed that the constructs under study
do confirm to predicted correlations according to the theoretical propositions from other
empirical studies.
With these validity tests and confirmations, the researcher is confident that the measuring
instruments employed for the study are valid and have resulted in precise measurements.
29
CHAPTER FOUR
ANALYSIS AND DISCUSSION
4.1 Introduction
This chapter presents the data analysis and discussion of the research findings. Both
descriptive, focusing on the description of the sample population as well as inferential
statistics, which makes inferences about the population based on the data from the sample
population, are presented in this chapter. The data analysis was undertaken with the help of
computer statistics package (IBM SPSS version 21). The demographic profile of the study
sample, consumers brand awareness within the FMCG category, source of information and
the underlying factors behind their buying behavior are discussed in this chapter.
This chapter is organized in a format to present the characteristics of the sample population,
the most important findings of the study within the three major sub-categories of FMCG and
the summary of findings for the whole FMCG category.
To test the hypotheses and achieve objectives of the study, a multiple linear regression
analysis was employed. Pearson's Correlation Coefficients were also calculated to observe
the relationships between the various variables influencing buying behavior and to see the
internal consistency of the measures.
The data collected from the sample population was screened for missing values, extreme
responses and only complete questionnaires were considered for the data analysis. Out of the
total 384 questionnaires distributed, a response rate of 76% was achieved with 15 more
questionnaires being discarded because of missing values. For the analysis and findings of
this study 277 questionnaires were used.
4.2 Demographic Profile of Respondents
The researcher made sure before giving out questionnaires that respondents do actually
involve in the purchasing and consumption of the products under consideration. Hence, the
profile of respondents can be taken as being representative of FMCG shoppers and
30
consumers in Addis Ababa. 75% of these shoppers are females and people between 26 and 50
years of age comprise almost 90% of the shoppers.
Summary of the respondents' demographic profile is presented in Table 4.1 below. It shows
the distribution of the sample respondents based on gender, age, educational level as well as
monthly income.
Table 4.1: Summary of Demographic Profile of Respondents

# Demographic Characteristic Frequency Percentage
1 Gender
Female 208 75.1
Male 69 24.9
2 Age in Years
18-25 25 9.0
26-35 113 40.8
36-50 130 46.9
Above 51 9 3.2
3 Education Level
Under 12th Grade 84 30.3
Completed High school 83 30.0
Diploma 54 19.5
B.A. Degree and Above 56 20.2
4 Monthly Income
Below 1000 40 14.4
1001-2500 116 41.9
2501-5000 73 26.4
Above 5001 48 17.3
4.3 Descriptive Analysis

4.3.1 Brand Awareness and Source of Information
Respondents were asked to identify the first brand that comes to their mind so that the study
can gauge the level of awareness in each of the FMCG product sub-categories. They also
distinguished the sources of information where they've heard or get introduced with these
brands. The following table summarizes the findings with this regards.
31
Table 4.2: First Brand that comes to Your Mind
Laundry Bar Frequency Packaged Frequency Toothpaste Frequency
Brand (Percentage) Milk Brand (Percentage) Brand (Percentage)
Peacock 111 (40%) Mama 133 (48%) Colgate 132 (48%)
B-29 93 (34%) Shola 82 (30%) Aquafresh 68 (24%)
Popular 31 (11%) Family 53 (19%) Signal 55 (20%)
Solar 18 (6.5%) Etete 9 (3%) Close-Up 16 (6%)
Saba 9 (3.2%) - ZACT 6 (2.2%)
Polar (Shemu) 15(5.4%) - -
As this table summarizes, the awareness of brands in the consumer's mindset is highly
concentrated within a couple of brands in each sub-category. For laundry bar soaps, a
cumulative 74% of respondents said at the top of their minds are two brands: Peacock (40%)
and B-29 (34%). For packaged milk products it is even more concentrated with 80% of the
time only two brands coming at the top of consumers' minds.
The following table gives indication of the top three well-known brands of FMCG by the
three sub-categories of the industry- Home Care, Food & Beverage and Personal Care.
Table 4.3: Top of the Mind Brands of FMCG by Category

For Laundry Bar Soap For Packaged Milk For Toothpaste
Peacock Mama Colgate
B-29 Shola Aquafresh
Popular Family Signal
Consumers of FMCG get acquaintance with these brands through a variety of information
sources from their environment. The top three sources of information for each sub-category
of FMCG according to the findings of this study are presented below.
32
Table 4.4: Top Three Sources of Information by FMCG sub-categories
# FMCG Sub-Categories Sources of Information Frequency
Exposure in Store/Kiosk Display 101 (36.5%)
1 Laundry Bar Soap Friends and Family 78 (28%)
Retailer Recommendation 59 (21%)
Exposure in Store/Kiosk Display 71 (26%)

2 Packaged Milk Retailer Recommendation 64 (23%)
Billboards & Vehicle Branding 53 (19%)
Friends and Family 90 (32%)

3 Toothpaste TV & Radio Ad 87 (31%)
Billboard & Vehicle Branding 48 (17%)
The most important sources of information for brand awareness as presented by sub-category
in the above table, gave an interesting insight within the FMCG sector within Addis Ababa.
For laundry bar soaps exposures in shops to brands had been reported as the prime source of
brand awareness by the respondents. Friends and family as well as the recommendation of the
traditional small kiosk retailer were also present as influential source of information in the
category. The impact of mass media advertisements as well as other marketing activities by
the brands is not a source of information for laundry bar brand awareness possibly because of
the limited activities by the manufacturers of such products. This can also give an indication
of the finding of this study as to the underlying factors of buying behavior.
For packaged milk products, the trend seems similar; with exposure in shops and retailer's
recommendation reported as important sources of information. Only reasonably because of
the intrinsic nature of the industry in distributing products through own branded vehicles and
vans of the companies making the products, the third important source of information was
reported to be vehicle branding.
Finally, the toothpaste product sub-category, which seems to have a different structure of
sources of information, is also presented in the table. In addition to family and friends as
important sources of information, two marketing related sources of information are reported
in this category - billboards and TV and radio advertisements. Different brands of toothpaste
products in the market do actually involve in marketing activities more than the above two
33
sub-categories. This might be related to the fact that these products are manufactured by
bigger multinational FMCG companies, which have the financial strength as well as the
marketing expertise.
These discussions of important sources of information can also give an indication of the more
influential factors in the consumer's buying behavior. As a case in point, a possible
generalization could be that a consumer who buys a toothpaste product would be influenced
by advertising than a consumer who buys laundry soap, where possibly takes the
recommendation of the retailer usually as important source of information.
4.3.2 Brand Choice and Underlying Factors

4.3.2.1 Laundry Bar Soap
Shoppers of laundry bar soaps have identified their usually preferred brand of product in the
survey. This preference of consumers has a noteworthy relationship with the awareness of the
brands discussed above. That is the more a consumer is aware of a brand or the brand is at the
top of his/her mind, the more likely is the consumer to usually buy that specific brand. Brands
of laundry soap that are mostly purchased by consumers in Addis Ababa are Peacock, B-29
and Popular. This result is presented below in table 4.5.
Table 4.5: Purchase (Consumption) Trends of Laundry Bar Soap by Brands

Laundry Bar Brand No. of Respondents Preferring Brand (Percentage)
Peacock 87 (31%)
B-29 81 (29%)
Popular 56 (20%)
Shemu 30 (11%)
Solar 16 (6%)
Saba 7 (2.5%)
Accordingly, the laundry soap named Peacock which stands at the top of mostly purchased
brands of laundry soap has similarly been reported as the number one brand of laundry soap
when respondents were asked to name the first brand of laundry soap that comes to their
mind.
Proceeding further into the major underlying factors behind consumers' buying behavior in
laundry bar soaps, a descriptive analysis of means and standard deviation is calculated on
each of the measurement items and variables in the study.
34
The statistical approach of calculating and analyzing the mean and standard deviation of the
variables of interest in a study gives a good indication of the significance of the variables
under consideration (Marczyk, Dematteo & Festinger, 2005). The mean indicates to what
extent the sample population averagely agrees or does not agree with the different statements.
The higher the mean, the more the respondents agree with the statement. The standard
deviation, which is also presented in the following table for laundry bar segment of FMCG,
on the other hand indicates the variability of an observed response from a single sample.
Table 4.6: Descriptive Analysis of Variables in Laundry Bar Soap Buying Behavior
Measurement Items and Variables Mean Standard Deviation
I trust its quality 3.89 .618
I know it has very good quality 3.66 .906
I know it offers excellent features 3.79 .962
Perceived Product Quality 3.78 .703
Its price is affordable for me 3.83 .804
Its price is fair 3.35 .976
Low price is my priority 3.29 .923
Perceived Price 3.49 .743
It is widely available 3.71 1.159
It is always found in my neighborhood 3.83 .987
If preferred brand is not available, I buy any other soap 3.67 1.144
Brand Availability 3.74 .930
I buy this brand because it is advertised on TV and Radio 1.70 .905
I buy this brand because it has attractive and recognizable ad 1.87 .783
Ads have influence over the types of laundry bar soap I buy 2.22 1.060
Advertisement 1.93 .760
Because its features come to my mind quickly 3.49 .824
Because I am familiar with it 3.95 .898
Because I think it is the number one among competing brands 3.63 .861
Brand Equity 3.69 .688
35
This analysis shows that perceived quality of the product plays the most important role in
influencing consumers' buying behavior. The mean of this variable is around 3.8 indicating
that the average consumer agrees to the statement that product quality is an important
consideration in his/her buying decisions. The second most important variable within the set
of the consumer's buying behavior is wide availability of the product or brand. The average
consumer agrees to the importance of availability at 3.74 mean points, which makes this
variable only slightly less important than product quality.
It was discussed in the literature that for fast moving, low-involvement products such factors
as perceived product quality (especially which is formed based on such cues as information
from friends or retailer's recommendation which are also the most important sources of
information as discussed above) and product availability, the mere fact of the product being
widely available play significant influence on the buying behavior of consumers.
Brand equity which measured awareness and image of brands based on Keller's model, is one
of the significant factors influencing buying behavior of laundry soap. The discussion made
earlier on the strong relationship between top of the mind brand and usually purchased brand
adds substance to this discussion. At 3.69 mean points the average consumer favors brands
that he/she is familiar with when considering purchase in laundry soap.
Price is also an important consideration for consumers in this market environment as

depicted in the mean score of 3.49.
An important point indicated in the literature was that such low involvement products do
benefit from advertisements in mass media, whereas this finding showed that advertisement
is the least important factor influencing buying behavior of consumers in laundry bar soap.
This might rather be explained as a consequence of the low penetration of mass media
advertising by companies making laundry bar soaps. These companies' financial strength and
marketing capacities seem to inhibit them from making big budget, successful advertisement
campaigns.
36
4.3.2.2 Packaged Milk
Proceeding to the second product segment of FMCG under focus in this study, the packaged
milk brand that is at the top of their mind was reported in the previous section under brand
awareness. The other important question was with regards to the packaged milk brand that
consumers usually buy and consumer, the result of which is depicted below.
Table 4.7: Purchase (Consumption) Trend of Packaged Milk by Brands

Packaged Milk Brand No. of Respondents Preferring Brand (Percentage)
Mama 119 (43%)
Shola 80 (29%)
Family 63 (23%)
Ada'a 15 (5.4%)
The packaged milk brand which stands at the top of mostly purchased brands, Mama Milk, as
reported in the earlier section of brand awareness enjoyed an equally top performance with
regards to appearing at the top of the respondents mind. By just observing the market
situations in the city, some of the key factors that might explain this high level of awareness
and brand usage include the aggressive distribution network of Mama Packaged Milk
supported by satellite distribution centers and strong van (door-to-door) sales to retailers.
In a similar manner with what has been done for the laundry bar soap segment, the
underlying factors behind consumers' buying behavior are explored through the descriptive
analysis of means and standard deviations on the measurement items and variables within the
packaged milk sub-category as well.
37
Table 4.8: Descriptive Analysis of Variables in Packaged Milk Buying Behavior
Measurement Items and Variables Mean Standard Deviation
It is widely available 3.69 .695
It is always found in my neighborhood 3.74 .841
If preferred brand is not available, I buy any other soap 3.64 .583
I buy this brand because it has attractive and recognizable ad 1.82 .388
Ads have influence over the types of laundry bar soap I buy 2.19 .814
This descriptive analysis reveals that for the respondents of this study, perceived quality of
the product is a significant influencing variable that is considerably taken into account when
the purchase of a packaged milk product is considered. Mean of this variable is the highest
with 4.06 points and trust of the product quality item has the highest recorded mean score of
all of the items. This can reasonably be deducted from people's perception of quality as the
most important parameter when it comes to consumption of food and drink products. A study
on buying behavior of bottled water (Gedamnesh, 2013) also confirms this finding of product
quality as the foremost important quality in the category.
38
The second most important variable according to these mean scores happens to be brand
availability. Consumer's choice of packaged milk brands tends to be highly determined by the
availability of the brands in their neighborhoods. This relates to the industry's key challenge
of delivering products at every corner of the city, which has been a case in point in a recent
feature article on the industry by one of the city's business weekly (Elleni Araya, 2012).
The third important variable to which on average respondents of this research agreed to a
significant level is brand equity which measured consumers' awareness and image of the
brands under investigation as per Keller's model. Accordingly, respondents' familiarity,
perception of features and the place of brand among competing variables has been reported as
important items to be considered during a purchase of a packaged milk product.
Whereas on the other hand, the two remaining variables- perceived price and advertisement
didn't enjoy the average agreement of the respondents as important variables of consideration
during a purchase decision of packaged milk. Advertisement has the most average
disagreement of the survey's respondents, possibly because of the same analogy as in the
laundry bar soap case- low penetration of mass media advertisement. This could be attributed
to the suppliers' market scenario of the industry with huge demand yet to be satisfied (ibid.).
The other variable with more average disagreement of respondents is the perceived price of
packaged milk brands as influencing choice variable in buying behavior. This could be a
reflection of the monotonous price structures adopted by almost all suppliers in the market.
There are no classes or categories of milk products in the market with adoption of different
price points as in the case of laundry bar soaps, where high priced brands with wrapped
packages and low-priced brands without wrapping coexist in the market. With the major
market share holders of the packaged milk industry the consumer price point of ETB 10 is
adopted in uniform manner.
4.3.2.3 Toothpaste
The third sub-category of fast moving consumer goods, personal care, was investigated in
this study by a selection of the toothpaste product category. Consumers were asked to
identify the brand of toothpaste that comes to the top of their mind and this was reported in
the descriptive analysis of brand awareness in earlier section of this chapter. Accordingly,
39
advertisement was one of the most important sources of information based on which the
researcher made the proposition that advertisement would be one of the underlying
influencing factors of buying behavior. Findings with this regard will be presented here.
The other important point respondents were asked to reflect was the brand of toothpaste
product they most often buy and consume, so that their responses with regards to the
influencing variables are confined in their minds as to why they buy this specific brand.
Result is presented.
Table 4.9: Purchase (Consumption) Trend of Toothpaste by Brands

Toothpaste Brand No. of Respondents Preferring Brand (Percentage)
Colgate 108 (39%)
Aquafresh 81 (29%)
Signal 73 (26%)
Close-Up 12 (4%)
In the following section, the underlying factors of buying behavior in this product sub-
category of FMCG will be investigated using a descriptive analysis of means and standard
deviations as well as a linear multiple regression analysis.
40
Table 4.10: Descriptive Analysis of Variables in Toothpaste Buying Behavior
Variables Mean Standard Deviation
It is widely available 2.76 1.097
It is always found in my neighborhood 2.66 1.189
If preferred brand is not available, I buy any other soap 2.21 .862
I buy this brand because it has attractive and recognizable ad 3.52 1.163
Ads have influence over the types of laundry bar soap I buy 4.13 1.228
This analysis shows that once again perceived quality of an FMCG category product is at the
top of consumers' buying behavior influencing their decision making process. The high mean
score of this variable at 4.23 points indicate that the average consumer agrees to the statement
that product quality is of top importance while buying toothpaste. An important indication of
this mean score (which appeared to be the highest mean score of all the variables in this
survey) is that here for a product to be used for oral care and hygiene, the average respondent
felt that product quality is even more important.
41
Another significant conclusion from these mean scores relates to the second important
variable within toothpaste buying behavior. This variable is the Advertisement, which has not
thus far topped the list in both laundry bar and packaged milk brands. As discussed
previously, this is most likely a result of the strong marketing communication and
advertisement campaigns implemented by the toothpaste brands. The top brands Colgate,
Aquafresh and Signal are manufactured and marketed by the American Colgate-Palmolive,
the British GlaxoSmithKline and the Anglo-Dutch Unilever, respectively. These big
multinationals have a considerable, if not the maximum, expertise and financial strength to
undertake effective marketing communication of their products.
Hence, it can be observed from these statistics that a well-advertised FMCG product does
indeed influence the decision making process and buying behavior of consumers in Addis
Ababa. This is an interesting finding considering the consistent findings in both of the
previous two FMCG products where Advertisement was only the least and rejected variable
of buying behavior. This would have biased the finding of this research had it been a research
only in a single or two of the product categories above.
The following variable which earned more of the average respondents' agreement is Brand
Equity, which scored 3.76 mean points. This indicates that brand awareness and image are
also within the list of important considerations the average consumer takes into account while
buying toothpaste products. It is in fact comprehensible that both constructs of awareness and
image are in part built by the marketing communication efforts of the brands in question.
However, the average respondents of this survey disagree on the significance importance and
consideration of the Brand Availability (2.54) and Perceived Price (2.59) variables of the
conceptual model as per the mean statistics. These might be explained as a one result of the
relatively higher and similar prices of toothpaste products in the market, as a consequence of
which consumers wouldn’t be making their purchase decision based on the perceived price
variable. For the availability of the brands, this is a product purchased at less frequency than
laundry bar soaps and packaged milk. Plus this product is usually bought at pharmacies and
drug stores other than the traditional kiosks or corner shops where majority of the FMCG
products are sold in the city. Hence, these and other factors might have a contribution for the
consideration of availability as the most significant influencing variable of buying behavior.
42
4.4 Regression Analysis (Hypotheses Testing)
4.4.1 Laundry Bar Soap
To investigate whether the hypothesized independent variables have any influence on the
dependent variable - buying behavior of consumers in Addis Ababa and to estimate the level
or magnitude of their contribution, a multiple linear regression analysis was employed. This
model (presented in Appendix 2a), explains 48% of the variation in consumer's buying
behavior is explained by the five predictor variables.
In order to confirm a basic assumption of multiple linear regressions, which is the absence of
high correlations between independent variables, collinearity statistics were calculated during
the data analysis. Both Tolerance and Variance Inflation Factor statistics (Appendix 2a)
proved that the independent variables doesn’t have a problem of multi-collinearity with their
values of higher than 0.1 and lower than 10 respectively (Green, 2000).
Table 4.11: Regression on Factors influencing Buying Behavior - Laundry Bar Soap
Model Unstandardized Standardized T Sig.
Coefficients Coefficients
B Std. Error Beta
(Constant) 1.080 .186 6.598 .000
Product Quality .013 .037 .168 2.356 .002
Price .029 .031 .265 2.921 .003
Availability .156 .023 .317 4.263 .000
Advertisement .021 .031 .047 .357 .512
Brand Equity .021 .036 .244 3.591 .015
For all the independent variables, except Advertisement, coefficients of the predictor
variables are statistically significant at less than five percent indicating is a significant
relationship of these variables to the dependent variable.
Considering the results of significance for the independent variables:
43
H1 Product Quality significantly influences buying behavior of FMCG consumers in Addis
Ababa is accepted;
H2 Price significantly influences buying behavior of FMCG consumer in Addis Ababa is
accepted;
H3 Advertisement significantly influences buying behavior of FMCG consumers in Addis
Ababa is rejected;
H4 Availability significantly influences buying behavior of FMCG consumers in Addis
Ababa is accepted; and
H5 Brand Equity significantly influences buying behavior of FMCG consumers in Addis
Ababa is accepted.
The coefficients of the independent variables or their Beta weights presented in Table 4.7
above are heavily relied on to assess the importance of the independent variables in
explaining the variation in the dependent variable. These weights indicate the expected score
difference in dependent variable as a result of one unit change from a specific independent
variable with all other independent variable scores held constant (Johnson, 2004).
And the magnitude of relationship between these independent variables and consumer's
buying behavior is predicted using the Standardized Beta Values. Based on the results
Availability is the most significant influencing variable in buying behavior of Laundry Bar
Soaps (with Beta coefficient of 0.317). Following are Price (0.265), Brand Equity (0.244)
and Product Quality (0.168) respectively.
4.4.2 Packaged Milk
The hypothesized independent variables' significant contribution to the dependent buying

behavior of consumers in Addis Ababa was also investigated through an inferential statistics
tool for the packaged milk product sub-category. This was undertaken through a multiple
linear regression analysis which ultimately gave statistical values predicting the relevance
and magnitude of influence on buying behavior from the independent variables.
The regression model (see Appendix 2) presents how much of the variance in the measure of
consumers' buying behavior is explained by the hypothesized factors. The model with its
predictor variables have accounted for 47% of the variance in the dependent variable.
44
To fulfill the objective of this study in distinguishing the most contributing variables in the
prediction of the dependent variable, the strength of each predictor variable on the criterion
variable was investigated via the Standardized Beta Coefficients. These coefficients explain
the average amount of change in the dependent variable that is caused by a unit change in the
independent variable.
Table 4.12: Regression on Factors influencing Buying Behavior - Packaged Milk

Model Unstandardized Standardized
Coefficients Coefficients t Sig.
B Std. Error Beta
(Constant) 1.220 .437 2.793 .006
Product Quality .347 .055 .432 6.330 .000
Perceived Price .790 .083 .026 9.510 .002
Availability .472 .064 .382 7.354 .000
Advertisement -.198 .070 -.163 -2.844 .200
Brand Equity .732 .052 .356 7.125 .000
The coefficients of significance give the following results on the statistical significance of the
independent variables. The results of the hypotheses are outlined below:

Ababa is accepted;
accepted;
Ababa is rejected;
Ababa is accepted; and
Ababa is accepted.
45
This result leads to the acceptance of the remaining four hypotheses related with the positive
significant contribution of Availability, Product Quality, Perceived Price and Brand Equity
on the packaged milk buying behavior of consumers in Addis Ababa.
The coefficients of the independent variables indicated in the Standardized Beta weights
presented in Table 4.7 above, give measures of the magnitude of the impact of the accepted
independent variables on the dependent variable.
Based on the results, Product Quality's Beta weight shows that this variable is the most
significant influencing variable in buying behavior of packaged milk products (with Beta
coefficient of 0.432). Following are Availability (0.382), Brand Equity (0.356) and Perceived
Price (0.026) respectively.
The negative beta coefficient of the advertisement variable also needs a discussion. This
might be a result of the consumer's perception that advertisement will not impact their
decision considering the absence of any such campaign by the brands in this sub-category.
4.4.3 Toothpaste
The regression model (see Appendix 2c) developed based on the conceptual model and the
primary data collected predicts around 50% of the variance in the measure of consumers'
buying behavior when it comes to the category of toothpaste products. The Beta coefficients
of this regression and the significance values are presented in Table 4.14 below.
Table 4.13: Regression on Factors influencing Buying Behavior - Toothpaste

Model Unstandardized Coefficients Standardized Coefficients T Sig.
B Std. Error Beta
(Constant) 2.962 .225 13.168 .000
Product Quality .060 .057 .360 1.069 .002
Price .170 .041 .062 2.412 .000
Availability .082 .024 .050 4.923 .150
Advertisement .153 .027 .372 .197 .003
Brand Equity .136 .062 .228 2.196 .029
46
The significance coefficient of the Availability variable shows that, this variable is the only
predictor variable that is not statistically significant at less than five percent for the product
sub-category of toothpaste.

Ababa is accepted;
accepted;
Ababa is accepted;
Ababa is rejected; and
Ababa is accepted.
From the Beta coefficients of these four variables we can understand that Advertisement (at
0.372) has the largest expected impact influencing buying behavior. This indicates the fact
that advertisement, if implemented within the category of FMCG will indeed have its
influence in agreement with most of the literature presented in this study. Theoretical and
empirical data presented showed that for low involvement products, which include FMCG
and which by definition doesn't inquire complex and extensive thought processes behind
consumer's buying behavior, one of the most important influencing factors include
advertisement (McDonald & Christopher, 2003).
Product quality, brand equity and perceived price do also have significant positive influences
in their order on buying behavior of toothpaste brands in Addis Ababa as can be observed
from the regression analysis coefficients. Price has the least contributing effect in this model
possibly as a result of the relatively similar price ranges within which these most usually
purchased and used brands of toothpaste products in the city are sold.
The perception of brand quality (at Beta value of 0.36) has the second largest amount of Beta
coefficient indicating the perception of quality is important within this category. Brand equity
with its parameters of brand awareness and perceived image is also presented as good
influencing variable within the category.
47
4.5 Discussion of Findings on FMCG Buying Behavior
By looking at the demographic profile of the shoppers and information source of brand
awareness, two important points are worth discussing. The first point is that the market is
highly dominated by the purchasing decisions of females within the households in Addis
Ababa. An important implication for marketers is the development of marketing strategies
based on the right knowledge of the decision maker and shopper.
The other important point arises from the list of important sources of information for brand
awareness. Retailer's recommendation, family and friends as well as exposure to brands in
shops have been identified as the most important sources of information. This informs the
marketer about whose information is the most valuable and acceptable. Regarding source of
information, advertisements were also found to be important sources of information within
the sub-category of toothpaste products.
A vital understanding that could be taken out of this study includes the fact that the FMCG
market and its sub-categories have much to mature with regards to advancing the marketing
landscape. It was found out, for instance, that marketers of the products under two categories
didn’t have strong marketing and communication campaigns as well as the price structures of
most of the brands were monotonous.
The FMCG sub-categories share major similarities when it comes to the list of key variables
influencing buying behavior. It should of course be noted that there were few significant
differences observed as a result of the market specific characteristics between the sub-
categories. The major difference was the fact that Advertisement was found as a significant
predictor variable within the toothpaste category while it has the least and insignificant
influence within the other sub-categories of FMCG. This will be discussed further.
As brought to the reader in the fore heading section, the factors within the set of the
consumer's decision making and buying behavior led to the acceptance of nearly all the
hypothesized predictor variables. These variables were developed through the exploratory
research and adoption of major theoretical foundations from the more advanced markets of
such products like India, Bangladesh and western countries. The independent variables
including product quality, perceived price, availability, advertisement as well as brand equity
48
were found to be major influencing variables for FMCG category products; of course there
are varying degrees and acceptance of the variables between the sub-categories.
For products within the home care category, the extension of discussions based on the
findings in the laundry bar soap survey and analysis, indicates that the significant predictor
variables are availability, perceived price, brand equity and product quality in this order of
magnitude. The research within the sub-category of toilet bar soaps in the Indian market
(Mahalingam & Kumar, 2012) also found out that wide availability and perceived quality of
the products have significant influences on choice of brands by the consumer. Within this
category, advertisement was found as an insignificant predictor of buying behavior.
In the second sub-category of FMCG, food and beverage, the researcher investigated buying
behavior within the fresh packaged milk products. This market has been found as the most
concentrated FMCG market where two brands seem to dominate the category. As for the
influencing variables of buying behavior, product quality was the most significant followed
by brand availability, brand equity and perceived price. The advertisement variable was
found to be an insignificant indicator of buying behavior. A plausible reason has been
indicated as being a result of the fact that in the packaged milk market demand by far exceeds
the capacity and capability of the suppliers to satisfy it.
Similarly, a study within the bottled water product sub-category of FMCG undertaken within
the Addis Ababan market (Gedamnesh, 2013) has forwarded perceived quality to be the most
significant predictor of consumer's buying behavior.
The third product - toothpaste is incorporated within the personal care sub-category of
FMCG. For toothpaste brands, perceived product quality was found to be the most significant
variable of buying behavior. For this variable the highest mean score of agreement from
respondents was recorded from all of the surveys in this study. Advertisement was uniquely
found to be an important indicator of buying behavior for the toothpaste product category.
For toothpaste, availability did not have a significant influence on the consumer's buying
decisions. This might have been the result of the different route to market structure by the
product category. It is in the researcher's observation that consumers usually buy this product
49
from pharmacies, cosmetics shops and super markets other than the traditional corner shops
in the neighborhoods.
This category was found to be indicative of a profound point for an important conclusion or
finding of this study within the Ethiopian FMCG category. In the two previous categories, the
impact of Advertisement was found to weak and insignificant. In fact, the researcher had
propositions that this would be a result of the low advertisement and marketing
communication activities along with other product specific observations put in place and
faced by these two categories.
The findings from the toothpaste category were important in confirming these propositions,
by revealing a significant positive contribution of Advertisement on the toothpaste buying
behavior of consumers. Both the descriptive and the regression analyses of the toothpaste
category were unique with this specific result. The researcher also reported from survey
results that mass media advertisement was an important source of information in this
category. Marketers of brands within this category were also found to be stronger in financial
as well as marketing capabilities than the marketers of the other products.
Hence, it can be concluded that as with the findings and writings in most of the FMCG
category, Advertisement has been found to play key role of influencing the buying behavior
of consumers in Addis Ababa. As highlighted in the previous section, this finding might have
been impossible to reach with this study if it was not for the selection and incorporation of all
the three sub-categories. Only because the other two sub-categories didn't have strong
marketing campaigns or other reasons, advertisement would have totally been rejected from
the list of significant variables influencing buying behavior.
Generalizing the findings between the three sub-categories of FMCG, it should be noted that
there are differences in the variables influencing buying behavior as there are significant
similarities. One of the major conclusions from the research by Alex and Menon (2013) was
that the FMCG category should not be treated as a single sector, as they found out consumers
to behave differently between the various sub-categories. However, this study did not found
out support for the absolute disparity of influencing variables in Addis Ababa. The
differences across the sub-categories were mostly related to the magnitude of the same
variables and significance and insignificance of a single variable between the categories.
50
Hence, the researcher believes that critical analysis should be there to effectively identify the
most important variables influencing buying behavior between the sub-categories. Marketers
of FMCG can to a significant amount consider the same set of variables as influencing
buying behavior and adopt strategies based on these; however, they should also be cautious
of not being trapped in implementing uniform marketing strategies between the different sub-
categories.
51
CHAPTER FIVE
SUMMARY, CONCLUSION AND RECOMMENDATION
5.1. Introduction
In this chapter of the study, the researcher presents summary of major findings, concluding
remarks and also highlights recommendations that might be useful to marketers of FMCG
and other researchers.
5.2. Summary of Findings
This study's inception is rooted deep down in the importance of the consumer behavior
discipline that has been growing in importance within the field of marketing since prime
works in the early 1960s. The researcher believes that research within the consumer behavior
discipline in general and specifically within the product category of fast moving consumer
goods is highly limited. Hence, proposed and undertaken this study.
This study was undertaken within the conceptual model developed through the exploratory
study and focus group discussion between marketing, research and brand managers in the
market. These methods resulted in a conceptual model based on the adoption of Kotler's
black box model with product quality, price, availability, advertisement and brand equity as
the independent variables influencing buying behavior. This model was empirically tested
within the scientific selection of three products of FMCG. The Addis Ababan consumer was
taken as the sampling frame and respondents were selected using convenience sampling
technique.
Descriptive and inferential statistical techniques were used to analyze the primary data
collected through structured questionnaires from shoppers and consumers of the FMCG
products under investigation. These analyses showed the significance and importance of the
five hypothesized variables in describing and influencing buying behavior in each of the three
products selected.
52
Generally speaking the influencing variables were found to significantly influence buying
behavior summing up results across the sub-categories. However, there were few differences
in the magnitude and significance of the variables in explaining buying behavior between the
sub-categories.
On top of these, the study also revealed some important findings on the demography of the
shoppers and decision makers (influencers) of FMCG products which were found to be
highly dominated by female members of the households, on tendency of the market being
controlled by few brands with top of the mind awareness as well as on the lack of strength
from a marketing perspective from the companies and marketers in the categories.
5.3. Conclusion
Consumer behavior lies at the core of the marketing function. This study once again proved
this contention by bringing into the table important finding within the stream of buying
behavior in Addis Ababa with special focus on FMCGs. Some concluding remarks will be
made in this section based on the finding of this research undertaking.
As laid out in the summary of findings, most of the respondents in this study are women. This
means that the decision making of which products and brands to buy within the category of
FMCG is mostly concentrated within this category of gender. It was reported that almost all
purchases are also found within the age group of 26-45 years. Both this set out there will
always be a target market with specific demographic and psychographic characteristics for
products.
Most brands with high reported top of the mind statistics were also the same brands which
enjoyed high reporting of usually bought brands. This shows that brand awareness or
familiarity is a primary selection criterion for brand choice and purchase. Hence, building
strong brand awareness and familiarity within the target market will be an important building
block of building a brand in this market.
In a nutshell, buying behavior and decision making process of consumers in the FMCG sub-
categories were found to be significantly influenced by similar set of variables. However,
53
differences were reported between the influencing variables and the magnitude of their
impact on buying behavior across the sub-categories. Advertisement was not accepted as a
significantly contributing variable within the buying behavior of laundry bar soap and
packaged milk products, while it was one of the significant predictors in the toothpaste sub-
category. For the availability variable, it was rejected with toothpaste products whereas it was
accepted as a significant predictor in the other two sub-categories. Therefore, an important
insight to FMCG marketers is the fact that though similar set of variables were found as
significant determinants of buying behavior in the whole category, there still exist few
significant differences between sub-categories as the findings suggest.
These differences also give indication of the fact that the FMCG category could be more
complex and diverse than just a single segment and calls for further cross-product and single
product specific investigations and exploration.
Going back to the objectives of this study, it can be concluded that this study has confirmed
the fact that buying behavior in FMCG are influenced by the hypothesized variables, has
given important insights on the existence of a few differences in buying behavior between
sub-categories as well as given a good indication of the demographic profile of FMCG
shoppers.
5.4. Recommendations
In addition to its major objective of identifying the major underlying factors behind
consumers buying behavior in FMCG, this study was undertaken with a couple of specific
objectives which included proposing an ideal marketing strategy and mix to market products
based on consumers' buying behavior. This and other recommendations, which will be useful
to marketers of such products and researchers in this area, are presented below.
 The FMCG business is growing as a result of the integration of the country in to the
trend of consumerism, which is a result of urbanization and modern life style as well
as with the entrance of big MNCs in to the market. Hence, companies and marketers
of such products should give due attention to the consumers' behavior to be
54
successful. One of the pathways to achieve this is to adopt a strategy of strong
research platforms to study the behavior of the consumer.
 FMCG marketers should also be wary of the specific target markets of their different
products and brands. This is because it has been found in this study that mostly
females make a significant amount of the decision with regards to such purchases.
This is an important shopper and consumer insight to marketers of such products. For
Kotler and Keller (2012) identifying the target market of one's products, which
include decision influencers, shoppers and consumers, is an important first step in
devising the right marketing strategy for effectiveness. Hence, this study puts as
recommendation for marketers of FMCG to focus on the identified target market
while devising their strategy.
 An important strategy or pathway that should be adopted by the FMCG marketers in
this environment is to take the issue of brand awareness as one of their top priority. It
has been found out that top of mind awareness strongly translates into mostly
purchased brands.
 Even though the general findings of the study indicate that buying behavior is
influenced by the consideration of nearly all the predictor variables assessed in this
study, the differential impact of the variables across the sub-categories should
strongly be taken into account for an appropriate, product specific marketing strategy.
o Marketers of Laundry Bar Soap: should give priority for the availability
variable according to the results of this study. That could for instance mean
that the marketers should establish strong distribution network ensuring wide
availability of their products.
o Marketers of Packaged Milk: top priority for this sub-category should be the
product quality variable. The availability variable is also one of the top most
important variables that should be considered.
o Marketers of Toothpaste: for this personal care sub-category, product quality
is again at the top of the most important marketing variables. As advertising
has already established itself as an important variable according to the
findings, these marketers should strive to use this tool in an advanced level.
55
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61
APPENDICES
APPENDIX 1A (English Questionnaire)
Addis Ababa University School of Graduate Studies, School of Commerce

Questionnaire on "Factors Influencing Consumer Buying Behavior of FMCG"
Dear Respondent,
My name is Fitsum Kelilie. I am working on a research for fulfillment of my Master of Arts Degree in
Marketing Management from the School of Commerce, Addis Ababa University.
I kindly ask you to fill all questions in this questionnaire to help me collect the most important pieces of
information regarding consumers' buying behavior in Fast Moving Consumer Goods in Addis Ababa.
I am very thankful for the support you are giving me and I would like to assure you that all your
responses will be kept confidential and will only be used for research purpose. You can contact me
through 0911 95 34 77 or fitkman@gmail.com
Part I: General Information

In answering this part of the questionnaire, please use tick () mark in the boxes provided.
1. Gender
Female Male
2. Educational Background
Under 12th Grade Completed High School College Diploma B.A. Degree & Above
3. Age Group
18 - 25 Years 26-35 Years 36-50 Years Above 51 Years
4. Monthly Income in ETB
Less than 1,000 1,001-2500 2501-5000 Above 5001
Part II: Specific Information

This part of the questionnaire collects information to identify the most important factors influencing the
consumers' buying behavior of Fast Moving Consumer Goods (FMCGs) in Addis Ababa.
2.1. LAUNDRY BAR SOAP

1. What is the first brand of Laundry Bar Soap that comes to your mind? ____________________
2. Please list 3 Brands of Laundry Bar Soap you remember.
_________________________ _________________________ _____________________
3. What were the means you knew about these brands of Toothpaste?
Exposure to Brands in Shops From Friends and Family
TV and Radio Advertising Retailer's Recommendation
Billboards & Vehicle Branding Any other _____________________
4. Which Laundry Bar Soap Brand do you usually buy and use? _____________________
5. Based on your answer to question no. 4 (above), please rate the following.
PRODUCT QUALLITY Strongly Disagre Neithe Agre Strongly
Disagree e (2) r (3) e (4) Agree
(1) (5)
I buy this Laundry Bar Soap because I trust its quality
I buy this Laundry Bar Soap because it has very good quality
I buy this Laundry Bar Soap because it offers excellent features
PRICE
I buy this Laundry Bar Soap because it's affordable
I buy this Laundry Bar Soap because it has fair price
I buy this Laundry Bar Soap because it has low price
AVAILABILITY
I buy this Soap because it's widely available
I buy this Soap because I found it in my neighborhood
If my preferred brand is not available in the shop, I will buy any
other soap available.
ADVERTISEMENT
I buy this Soap because it is advertised on TV and Radio
I buy this Soap because it has an attractive and recognizable
advertisement
Ads have influence over the types of laundry bar soap I buy
BRAND EQUITY
I buy this Soap because its features come to my mind quickly
I buy this Laundry Bar Soap because I am familiar with it
I buy this Soap because I think it's the number one brand
2.2. PACKAGED MILK

1. What is the first brand of Packaged Milk that comes to your mind? _________________
2. Please list 3 Brands of Packaged Milk Products you remember.

____________________ ________________ ________________

4. Which Packaged Milk Brand do you usually buy and consume? __________________
5. Based on your answer to above question (No. 4) please rate the following.
PRODUCT QUALLITY Strongly Disagre Neithe Agre Strongly
Disagree e (2) r (3) e (4) Agree
(1) (5)
I buy this Packaged Milk because I trust its quality
I buy this Packaged Milk because it has very good quality
I buy this Packaged Milk because it offers excellent features
PRICE
I buy this Packaged Milk because it's affordable
I buy this Packaged Milk because it's priced fair
I buy this Packaged Milk because it has low price
AVAILABILITY
I buy this Packaged Milk because it's widely available
I buy this Packaged Milk because I found it in my neighborhood
If my preferred brand is not available in the shop, I will buy any
other Packaged Milk available
ADVERTISEMENT
I buy this Packaged Milk because it is advertised on TV and Radio
I buy this Packaged Milk because it has an attractive and
recognizable advertisement
Ads have influence over the types of Packaged Milk I buy
BRAND EQUITY
I buy this Packaged Milk because its features come to my mind
quickly
I buy this Packaged Milk because I am familiar with it
I buy this Packaged Milk because I think it is the number one
among other competing brands
2.2. TOOTH PASTE

1. What is the first brand of Toothpaste that comes to your mind? ____________________
2. Please list top 3 Brands of toothpaste you can remember.
____________________ _____________________ _____________________
4. Which Toothpaste Brand do you usually buy and use? _____________________
5. Based on your answer to the question above (No. 4) please rate the following.
PRODUCT QUALLITY Strongly Disagree Neither Agree Strongly
Disagree (1) (2) (3) (4) Agree (5)
I buy this Toothpaste because I trust its quality
I buy this Toothpaste because it has very good quality
I buy this Toothpaste because it offers excellent features
PRICE
I buy this Toothpaste because it's affordable
I buy this Toothpaste because it's priced fair
I buy this Toothpaste because it has low price
AVAILABILITY
I buy this Toothpaste because it's widely available
I buy this Toothpaste because I found it in my neighborhood
If my preferred brand is not available in the shop, I will buy
any other Toothpaste available
ADVERTISEMENT
I buy this Toothpaste because it is advertised on TV and
Radio
I buy this Toothpaste because it has an attractive and
recognizable advertisement
Ads have influence over the types of Toothpaste I buy
BRAND EQUITY
I buy this Toothpaste because its features come to my mind
quickly
I buy this Toothpaste because I am familiar with it
I buy this Toothpaste because I think it is the number one
among other competing brands
6. How do you rate your buying behavior with regards to the above and related products?
CONSUMER'S BUYING BEHAVIOR Strongly Disagree (2) Agree Strongly

Disagree (1) (4) Agree (5)
I usually buy the best quality brands
I usually buy fair priced brands
I usually buy widely available brands
I usually buy well-advertised brands
I usually buy the brands I know very well
Thank You for Your Time!

APPENDIX 1B (Amharic Questionnaire)
አዲስ አበባ ዩኒቨርስቲ የድኅረ ምረቃ ትምህርት ቤት የንግድ ሥራ ትምህርት ቤት
መጠይቅ
ውድ ተጠያቂ
ስሜ ፍፁም ከልሌ ነው፡፡ በአዲስ አበባ ዩኒቨርስቲ የማርኬቲንግ ማኔጅመንት ማስትሬት ዲግሪ ተመራቂ ስሆን ይህንን ጥናት
የማካሂደው ትምህርቴን ለማጠናቀቅ እንዲረዳኝ ነው፡፡ በዚህ መጠይቅ የተካተቱትን ሁሉንም ጥያቄዎች እንዲመልሱልኝ በትህትና
እጠይቅዎታለሁ፡፡
ለሚያደርጉልኝ ትብብር ያለኝን ከፍተኛ ምስጋና እያቀረብኩ ምላሽዎ ለዚህ የጥናት ሥራ ብቻ የሚውል መሆኑን ልገልጽልዎት
እወዳለሁ፡፡ ለሚኖርዎት ጥያቄ በኢሜየል አድራሻዬ fitkman@gmail.com ወይንም በቁጥር 0911 95 34 77 ሊደውሉልኝ
ይችላሉ፡፡
ክፍል አንድ: ጠቅላላ መረጃ

5. ጾታ ሴት ወንድ
6. እድሜ 18 - 25 26-35 36-50 ከ51 በላይ
7. የትምህርት ደረጃ
ከ12ኛ ክፍል በታች ሁለተኛ ደረጃ ዲፕሎማ የመጀመሪያ ዲግሪ እና ከዚያ በላይ
8. ወርሃዊ ገቢ በብር
ከ 1,000 በታች ከ1,001-2500 ከ2501-5000 ከ 5001 በላይ
ክፍል 2
2.1. ደረቅ የልብስ ሳሙና
1. ደረቅ የልብስ ሳሙና ሲያስቡ ወደ አዕምሮዎ የሚመጣው የመጀመሪያ የልብስ ሳሙና ዓይነት/ብራንድ (brand) የትኛው ነው?
________________________
2. እባክዎ በጣም የሚያስታውሷቸውን ሦስት ደረቅ የልብስ ሳሙና ዓይነቶች/ብራንዶች (Brands) ይዘርዝሩ፡፡
______________________ ______________________ ______________________
3. ስለ እነዚህ ደረቅ የልብስ ሳሙናዎች ያወቁባቸው መንገዶች የትኞቹ ናቸው (ከአንድ በላይ ሊመርጡ ይቻላሉ)?
በሱቆች ውስጥ አይቼ ከጓደኞቼ እና ቤተሰቦቼ ሰምቼ ከቴሌቭዥንና የሬድዮ ማስታወቂያዎች

የባለሱቁ (ሽያጭ ሰራተኛ) ምክር (አስተያየት) የህትመት፣ ቢልቦርድ፣ የመኪና ላይ ማስታወቂያ
ሌላ ካለ ይግለጹ _____________
4. አብዛኛውን ጊዜ የሚገዙትና የሚጠቀሙት ደረቅ የልብስ ሳሙና የትኛው ዓይነት/ብራንድ (Brand) ነው?
______________________
5. ለጥያቄ ቁጥር 4 የሰጡትን መልስ መሠረት በማድረግ ለሚከተሉት ጥያዎቄች መልስዎን ይስጡ፡፡
በጣም አልስማማም አስተያየት እስማማለሁ በጣም

አልስማማም የለኝም እስማማለሁ
ይህንን ደረቅ የልብስ ሳሙና የምገዛው ጥራት እንዳለው ስለማምን ነው
ይህንን ደረቅ የልብስ ሳሙና የምገዛው በጣም ጥሩ የጥራት ደረጃ ስላለው ነው
ይህንን ደረቅ የልብስ ሳሙና የምገዛው በጣም ጥሩ መስፈርቶችን ስለሚያሟላ ነው
ይህንን ደረቅ የልብስ ሳሙና የምገዛው ዋጋው ከገቢዬ ጋር ስለሚመጣጠን ነው

ይህንን ደረቅ የልብስ ሳሙና የምገዛው ከሚሰጠው አገልግሎት አንፃር ዋጋው
ተመጣጣኝ ስለሆነ ነው
ይህንን ደረቅ የልብስ ሳሙና የምገዛው ዝቅተኛ ዋጋ ስላለው ነው
ይህንን ደረቅ የልብስ ሳሙና የምገዛው በሁሉም ቦታ ስለሚገኝ ነው

ይህንን ደረቅ የልብስ ሳሙና የምገዛው ሁል ጊዜ በሰፈሬ ስለማገኘው ነው
የምመርጠውን ደረቅ ልብስ ሳሙና ካላገኘሁ ማንኛውንም ሌላ ዓይነት ሳሙና
እገዛለሁ
ይህንን ደረቅ የልብስ ሳሙና የምገዛው በቴሌቭዥንና ሬድዮ ስለሚተዋወቅ ነው

ይህንን ደረቅ የልብስ ሳሙና የምገዛው ሳቢና የሚታወስ ማስታወቂያ ስላለው ነው
ማስታወቂያዎች በደረቅ ልብስ ሳሙና ምርጫዬ ላይ ተፅዕኖ ያደርጋሉ
ይህንን ደረቅ ልብስ ሳሙና የምገዛው ቶሎ ወደ አዕምሮዬ የሚመጡ ባሕርያት

ስላሉት ነው
ይህንን ደረቅ የልብስ ሳሙና የምገዛው በሱቅ ወይም መደብር ውስጥ ወደ ዓይኔ
ቶሎ የሚመጣና የምለየው ሳሙና ስለሆነ ነው
ይህንን ደረቅ የልብስ ሳሙና የምገዛው በደንብ ስለማውቀው ነው
ይህንን ደረቅ የልብስ ሳሙና የምገዛው በከተማው ውስጥ በደንብ የሚታወቅ
ስለሆነ ነው
ይህንን ደረቅ ልብስ ሳሙና የምገዛው ካሉት ልብስ ሳሙናዎች ሁሉ አንደኛ ስለሆነ
ነው
2.2. ፈሳሽ የታሸገ ወተት

1. ወደ አዕምሮዎ የሚመጣው የመጀመሪያ የታሸገ ወተት ዓይነት/ብራንድ (brand) የትኛው ነው? ______________________
2. እባክዎ በጣም የሚያስታውሷቸውን ሦስት ፈሳሽ የታሸጉ ወተት ዓይነቶች/ብራንዶች (Brands) ይዘርዝሩ፡፡
______________________ ______________________ ______________________
3. ስለ እነዚህ ፈሳሽ የታሸጉ የወተት ዓይነቶች ያወቁባቸው መንገዶች የትኞቹ ናቸው (ከአንድ በላይ ሊመርጡ ይቻላሉ)?

ሌላ ካለ ይግለጹ _____________
4. አብዛኛውን ጊዜ የሚገዙትና የሚጠቀሙት ፈሳሽ የታሸገ ወተት የትኛው ዓይነት/ብራንድ(Brand) ነው? _______________
5. ለጥያቄ ቁጥር 4 የሰጡትን መልስ መሠረት በማድረግ ለሚከተሉት ጥያቄዎች መልስዎን ይስጡ፡፡

ይህንን ፈሳሽ የታሸገ የወተት ዓይነት የምገዛው ጥራት እንዳለው ስለማምን ነው
ይህንን ፈሳሽ የታሸገ ወተት የምገዛው በጣም ጥሩ የጥራት ደረጃ ስላለው ነው
ይህንን ፈሳሽ የታሸገ ወተት የምገዛው በጣም ወሳኝ መስፈርቶችን ስለሚያሟላ ነው
ይህንን ፈሳሽ የታሸገ ወተት የምገዛው ዋጋው ከገቢዬ ጋር ስለሚሄድ ነው

ይህንን ፈሳሽ የታሸገ ወተት የምገዛው ከአገልግሎት አንፃር ዋጋው ተመጣጣኝ
ስለሆነ ነው
ይህንን ፈሳሽ የታሸገ ወተት የምገዛው ዝቅተኛ ዋጋ ስላለው ነው
ይህንን ፈሳሽ የታሸገ ወተት የምገዛው በሁሉም ቦታ ስለሚገኝ ነው

ይህንን ፈሳሽ የታሸገ ወተት የምገዛው ሁል ጊዜ በሰፈሬ ስለማገኘው ነው
የምመርጠውን ፈሳሽ ወተት ካጣሁ ማንኛውንም ዓይነት የታሸገ ወተት እገዛለሁ
ይህንን ፈሳሽ የታሸገ ወተት የምገዛው በቴሌቭዥንና ሬድዮ ስለሚተዋወቅ ነው

ይህንን ፈሳሽ የታሸገ ወተት የምገዛው ሳቢና የሚታወስ ማስታወቂያ ስላለው ነው
ማስታወቂያዎች በፈሳሽ የታሸገ ወተት ዓይነት ምርጫዬ ላይ ተፅዕኖ ያደርጋሉ
ይህንን ፈሳሽ የታሸገ ወተት የምገዛው ቶሎ ወደ አዕምሮዬ የሚመጡ ባሕርያት

ስላሉት ነው
ይህንን ፈሳሽ የታሸገ ወተት የምገዛው በሱቅ/መደብር ውስጥ ወደ ዓይኔ ቶሎ
የሚመጣና የምለየው ስለሆነ ነው
ይህንን ፈሳሽ የታሸገ ወተት የምገዛው በደንብ ስለማውቀው ነው
ይህንን ፈሳሽ የታሸገ ወተት የምገዛው በከተማው ውስጥ በደንብ ስለሚታወቅ ነው
ይህንን ፈሳሽ የታሸገ ወተት የምገዛው ካሉት ሌሎች ወተቶች ሁሉ አንደኛ ስለሆነ
ነው
2.3. የጥርስ ሳሙና
1. የጥርስ ሳሙና ሲያስቡ ወደ አዕምሮዎ የሚመጣው የመጀመሪያው የጥርስ ሳሙና ዓይነት/ብራንድ (brand) የትኛው ነው?
______________________
2. እባክዎ በጣም የሚያስታውሷቸውን ሦስት የጥርስ ሳሙና ዓይነቶች/ብራንዶች (Brands) ይዘርዝሩ፡፡
______________________ ______________________ _________________
3. ስለ እነዚህ የጥርስ ሳሙና ዓይነቶች ያወቁባቸው መንገዶች የትኞቹ ናቸው (ከአንድ በላይ ሊመርጡ ይቻላሉ)?

ሌላ ካለ ይግለጹ _____________
4. አብዛኛውን ጊዜ የሚገዙትና የሚጠቀሙት የጥርስ ሳሙና የትኛው ዓይነት/ብራንድ (Brand) ነው?
__________________
5. ለጥያቄ ቁጥር 4 የሰጡትን መልስ መሠረት በማድረግ ለሚከተሉት ጥያዎች መልስዎን ይስጡ፡፡

ይህንን የጥርስ ሳሙና የምገዛው ጥራት እንዳለው ስለማምን ነው
ይህንን የጥርስ ሳሙና የምገዛው በጣም ጥሩ የጥራት ደረጃ ስላለው ነው
ይህንን የጥርስ ሳሙና የምገዛው በጣም ወሳኝ መስፈርቶችን ስለሚያሟላ ነው
ይህንን የጥርስ ሳሙና የምገዛው ዋጋው ከገቢዬ ጋር ስለሚሄድ ነው

ይህንን የጥርስ ሳሙና የምገዛው ከሚሰጠው አገልግሎት አንፃር ዋጋው
ተመጣጣኝ ስለሆነ ነው
ይህንን የጥርስ ሳሙና የምገዛው ዝቅተኛ ዋጋ ስላለው ነው
ይህንን የጥርስ ሳሙና የምገዛው በሁሉም ቦታ ስለሚገኝ ነው

ይህንን የጥርስ ሳሙና የምገዛው ሁል ጊዜ በሰፈሬ ስለማገኘው ነው
የምመርጠውን የጥርስ ሳሙና ካጣሁ ማንኛውንም ሌላ ዓይነት የጥርስ ሳሙና
እገዛለሁ
ይህንን የጥርስ ሳሙና የምገዛው በቴሌቭዥንና ሬድዮ ስለሚተዋወቅ ነው

ይህንን የጥርስ ሳሙና የምገዛው ሳቢና የሚታወስ ማስታወቂያ ስላለው ነው
ማስታወቂያዎች በጥርስ ሳሙና ምርጫዬ ላይ ተፅዕኖ ያደርጋሉ
ይህንን የጥርስ ሳሙና የምገዛው ቶሎ ወደ አዕምሮዬ የሚመጡ ባሕርያት ስላሉት

ነው
ይህንን የጥርስ ሳሙና የምገዛው በመደብር ውስጥ ወደ ዓይኔ ቶሎ የሚመጣና
የምለየው የጥርስ ሳሙና ስለሆነ ነው
ይህንን የጥርስ ሳሙና የምገዛው በደንብ ስለማውቀው ነው
ይህንን የጥርስ ሳሙና የምገዛው በከተማው ውስጥ በደንብ የሚታወቅ ስለሆነ
ነው
ይህንን የጥርስ ሳሙና የምገዛው ካሉት የጥርስ ሳሙናዎች ሁሉ አንደኛ ስለሆነ
ነው
ከላይ የተጠቀሱትን እና መሰል ምርቶችን በሚገዙበት ወቅት ግዢዎን የሚወስኑት ነገሮች የትኞቹ ናቸው?
በጣም አልስማማም አልስማማም እስማማለሁ በጣም እስማማለሁ
በአብዛኛው በጣም ከፍተኛ የጥራት ደረጃ ያላቸውን የምርት
ዓይነቶች/ብራንዶች እገዛለሁ
በአብዛኛው ተመጣጣኝ ዋጋ ያላቸውን የምርት ዓይነቶች/ብራንዶች
እገዛለሁ
በአብዛኛው በሁሉም ቦታ የማገኛቸውን የምርት ዓይነቶች/ብራንዶች
እገዛለሁ
በአብዛኛው የሚተዋወቁ/ማስታወቂያ ያላቸውን የምርት
ዓይነቶች/ብራንዶች እገዛለሁ
በአብዛኛው በደንብ የማውቃቸውን የምርት ዓይነቶች/ብራንዶች
እገዛለሁ
እጅግ አድርጌ አመሰግናለሁ!

APPENDIX 2a: Regression Analysis of Laundry Bar Soap
b
Model Summary
Model R R Square Adjusted R Square Std. Error of the

Estimate
a
1 .697 .485 .468 .33315
a. Predictors: (Constant), BrandEquity, Availability, Price, Advertisement, ProductQuality

b. Dependent Variable: BuyingBvr
a
ANOVA
Model Sum of Squares Df Mean Square F Sig.

b
Regression 24.134 5 3.027 29.242 .000
1 Residual 24.089 271 .111
Total 48.213 276
a. Dependent Variable: BuyingBvr

b. Predictors: (Constant), BrandEquity, Availability, Price, Advertisement, ProductQuality
a
Coefficients
Unstandardized Standardized
Coefficients Coefficients Collinearity Statistics
Model B Std. Error Beta T Sig. Tolerance VIF

1 (Constant) 1.080 .186 6.598 .000
Product Quality .013 .037 .168 2.356 .002 .602 1.662
Price .029 .031 .265 2.921 .003 .739 1.352
Availability .156 .023 .317 4.263 .000 .880 1.137
Advertisement .021 .031 .047 .357 .512 .715 1.398
Brand Equity .021 .036 .244 3.591 .015 .667 1.499
a. Dependent Variable: Buying Bvr
APPENDIX 2b: Regression Analysis of Packaged Milk
b
Model Summary

Estimate
a
1 .691 .478 .468 .24125
a. Predictors: (Constant), Brand Equity, Perceived Price, Advertisement, Product Quality, Availability
b. Dependent Variable: Buying Behavior
a
ANOVA

b
Regression 14.440 5 2.888 49.621 .000
1 Residual 15.773 271 .058
Total 30.213 276
a. Dependent Variable: Buying Behavior

b. Predictors: (Constant), Brand Equity, Perceived Price, Advertisement, Product Quality, Availability
a
Coefficients

1 (Constant) 1.220 .437 2.793 .006
Product Quality
.347 .055 .432 6.330 .000 .457 2.186
Perceived Price
.790 .083 .026 9.510 .002 .360 2.778
Availability .472 .064 .382 7.354 .000 .368 2.718

Advertisement
-.198 .070 -.163 -2.844 .200 .583 1.716
BrandEquity
.732 .052 .356 7.125 .000 .628 1.593
a. Dependent Variable: BuyingBehavior

APPENDIX 2c: Regression Analysis of Toothpaste
b
Model Summary

Estimate
a
1 .712 .506 .491 .32949
a. Predictors: (Constant), Brand Equity, Advertisement, Availability, Price, Product Quality
b. Dependent Variable: Buying Behavior
a
ANOVA

b
Regression .792 5 .158 1.460 .203
1 Residual 29.421 271 .109
Total 30.213 276
a. Dependent Variable: BuyingBvr

b. Predictors: (Constant), BrandEquity, Advertisement, Availability, Price, ProductQuality
a
Coefficients
1 (Constant) 2.962 .225 13.168 .000
Product Quality .060 .057 .360 1.069 .002 .409 2.443
Price .170 .041 .062 2.412 .000 .610 1.639
Availability .082 .024 .050 4.923 .150 .913 1.095
Advertisement .153 .027 .372 .197 .003 .824 1.214
Brand Equity .136 .062 .228 2.196 .029 .334 2.998

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FACTORS INFLUENCING CONSUMER BUYING BEHAVIOR

TOWARDS FAST MOVING CONSUMER GOODS (FMCG) IN

By: Fitsum Kelilie

Thesis Submitted to the School of Graduate Studies of Addis Ababa University in

A Thesis Submitted to the School of Graduate Studies of Addis Ababa University

By: Fitsum Kelilie

Advisor: Rakshit Negi (Ph. D.)

By: Fitsum Kelilie

Approved by Board of Examiner

__________________________ ____________________ ____________________

Advisor Signature Date

__________________________ ____________________ ____________________

Examiner Signature Date

__________________________ ____________________ ____________________

Examiner Signature Date

Fitsum Kelilie ________________ __________________

Confirmation by Advisor ________________ __________________

Contents Page No.

CHAPTER ONE: INTRODUCTION

CHAPTER TWO: LITERATURE REVIEW

CHAPTER FOUR: ANALYSIS AND DISCUSSION

CHAPTER FIVE: SUMMARY, CONCLUSION AND RECOMMENDATION

CPG - Consumer Packaged Goods

1.1 Background of the Study

1.3 Research Questions

2. Do consumers of FMCG behave in predictable and uniform manner towards their

In addition, the study also has the following specific objectives:

1.5 Definition of Terms

1.7 Scope and Limitation of the Study

1.8 Organization of the Study

2.2 Theoretical Framework

Consumer Buying Behavior

1. Traditional Models of Consumer Behavior

a. The Economic Man Model

 Hierarchy of Needs Model: Abraham Maslow (1954) came up with a theory of

Consequently, some of the best-known comprehensive consumer decision-making models

Hypothetical Constructs: are psychological variables such as motives, attitudes, perception

Francesco Nicosia, one of the prominent motivation researchers, published an influential

c. EKB (Engel-Kollat-Blackwel) Model

 Information Processing: incoming marketing and non-marketing stimuli are

d. Kotler's Behavioral Choice Model

2.1.3 Fast Moving Consumer Goods

 Generalization of buying behavior in FMCG can reasonably be made if at minimum

2.1.4 Consumer Behavior in Fast Moving Consumer Goods

2.3 Conceptual Framework

2.3.1 Product Quality

Advertising is a core component of integrated marketing communications (IMC). IMC

H3: Advertisement significantly influences buying behavior of FMCG consumers in Addis

H4: Availability significantly influences buying behavior of FMCG consumers in Addis

2.3.5 Brand Equity

3.2 Research Design

3.3 Sampling and Sampling Techniques

3.4 Data Collection Methods

3.5 Method of Data Analysis

A multiple regression analysis is employed in order to investigate the impact of the

Table 3.2: Reliability of Measurement Items

3.7 Validity Analysis

4.2 Demographic Profile of Respondents

Table 4.1: Summary of Demographic Profile of Respondents

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Fitsum Kelilie __

Confirmation by Advisor __